Tanger Outlet Centers Acquires the Outlets at Hershey

GREENSBORO, N.C., Oct. 3, 2011 (GLOBE NEWSWIRE) -- Tanger Factory Outlet Centers, Inc., (NYSE:SKT),today announced closing of a $56 million transaction resulting in the acquisition of a controlling economic interest in The Outlets at Hershey, a popular outlet center located adjacent to Hershey Chocolate World and Amusement Park on Route 39 near Interstate 81 in Hershey, Pennsylvania. The combined acquisition price consists of approximately $24.6 million in cash and the assumption of approximately $31.4 million of indebtedness.

"We are pleased to add this fully-leased property and its upscale line-up of retailers to the Tanger portfolio. This acquisition should provide an accretive investment for our shareholders in our first year of ownership, and we believe that over time we will bring value to the property by leveraging our strong tenant relationships and implementing our highly successful marketing programs," stated Steven B. Tanger, President and Chief Executive Officer. "The transaction marks our fourth acquisition this year, increasing our portfolio by approximately 1.3 million square feet, or 14%," he added.

The center, which will be rebranded as Tanger Outlets Hershey, is comprised of approximately 248,000 leasable square feet and features nearly 60 designer outlets and brand name stores including Aeropostale, Brooks Brothers, Calvin Klein, Carter's, Chico's, Coach, GAP, J. Crew, Nautica, Nine West, Oshkosh B'Gosh, Polo Ralph Lauren, Tommy Hilfiger, and Under Armour, just to name a few.

Located in a market that attracts millions of tourists each year, the property also draws regional shoppers, with a population of 1.3 million within a 30 mile radius. Based on its close proximity to Tanger Outlets Lancaster, located approximately 30 miles away, Tanger expects to recognize synergies between the two properties.