Simon Property Group and Park Place Entertainment Execute Ground Lease for Major Expansion of the Forum Shops at Caesars
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Simon Property Group and Park Place Entertainment Execute Ground Lease for Major Expansion of The Forum Shops at Caesars February 25, 2003 Construction Underway with Completion Scheduled for Fall 2004 LAS VEGAS, Feb 25, 2003 /PRNewswire-FirstCall via COMTEX/ -- Simon Property Group, Inc. (NYSE: SPG) and Park Place Entertainment Corporation (NYSE: PPE), parent company of Caesars Palace, today announced that the two parties have executed a ground lease for prized property fronting Las Vegas Blvd on the Las Vegas Strip. This lease execution allows for commencement of construction on the expansion of The Forum Shops at Caesars, Las Vegas' premier retail, dining and entertainment destination and the most successful shopping venue in the country. The 175,000-square-foot, three-level expansion will extend from the existing retail, dining and entertainment icon to the famed Las Vegas Strip. The additional array of upscale specialty retail tenants will further expand The Forum Shops' selection of luxury brand merchandise. Several new restaurants also will further broaden its appeal as the city's premier venue for an exclusive fine dining experience. The classic Roman architecture of the expansion, combined with a grand pedestrian plaza on Las Vegas Boulevard, will create a signature entrance to The Forum Shops. Construction on the expansion began immediately upon the lease signing with completion scheduled for the fall of 2004. "From the day The Forum Shops opened in 1992, its momentum has never waned," said David Simon, chief executive officer of Simon Property Group. "This is undisputedly the most valuable retail real estate in Las Vegas, and this newest expansion provides the opportunity to further solidify The Forum Shops' position as one of the country's premier shopping and entertainment destinations for both domestic and international visitors." Pent-up demand for space at The Forum Shops has generated a waiting list of world-class retailers and restaurants. Recent additions include Valentino, Tod's, Chopard, MAC Cosmetics, D&> Sport, Dolce & Gabbana and Roberto Cavalli. Exclusive retailers soon to open include Tourneau, Jay Strongwater and Burberry. And though construction is just underway, Joe's Seafood, Prime Steak & Stone Crab (of South Beach fame) and Donald Pliner have already committed to the expansion. Additionally, Louis Vuitton and Christian Dior, two top international luxury brands -- both owned by LVMH Fashion Group -- are undergoing major expansions at The Forum Shops. Louis Vuitton has experienced tremendous success and is tripling in size and offering its full range of product lines in the retailer's new Global Store. Christian Dior, which has also experienced outstanding success, has committed to an expanded presence at The Forum Shops. The expansion of The Forum Shops comes as Las Vegas continues to solidify itself as a world-class shopping destination, with average shopping expenditures per visitor rising more than 25% in the last five years, according to the Las Vegas Convention and Visitors Authority statistics. "The Forum Shops at Caesars represents a great success story for Caesars Palace, for Park Place Entertainment and for Las Vegas," said Park Place Entertainment Corporation President and Chief Executive Officer Wallace R. Barr. "On an average day, the shops attract 50,000 people, driving more than 10 times the foot traffic of the most successful Las Vegas showroom. The expansion will complement all the other great new attractions at Caesars Palace, giving Las Vegas visitors even more reasons to make Rome their home." The Forum Shops at Caesars opened in May, 1992 with 283,000 square feet of GLA. A second phase, which increased The Forum Shops' size to 500,000 square feet, was completed in August, 1997. In 2002 alone, the center welcomed 18 million visitors, and The Forum Shops continues to be widely acclaimed as the most productive shopping center in the U.S. In February, 2003, Simon announced it will become sole owner of The Forum Shops. About Simon Property Group Simon Property Group, Inc. (NYSE: SPG), headquartered in Indianapolis, Indiana, is a real estate investment trust engaged in the ownership and management of income-producing properties, primarily regional malls and community shopping centers. Through its subsidiary partnerships, it currently owns or has an interest in 242 properties containing an aggregate of 183 million square feet of gross leasable area in 36 states, as well as nine assets in Europe and Canada. Additional Simon Property Group information is available at www.shopsimon.com . About Park Place Entertainment Park Place Entertainment owns, manages or has an interest in 27 gaming properties operating under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names with a total of approximately two million square feet of gaming space, 29,000 hotel rooms and 55,000 employees worldwide. Additional information on Park Place Entertainment can be accessed through the company's web site at www.parkplace.com . NOTE: This press release contains "forward-looking statements" within the meaning of the federal securities law, which are intended to qualify for the safe harbor from liability provided there under. All statements which are not historical statements of fact are "forward-looking statements" for purposes of these provisions and are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements include all financial projections, including projections of revenue, market share, earnings, EBITDA, free cash flow, statements of management's plans, objectives or expectations of future economic performance, statements regarding new developments or opportunities, statements of belief, and/or statements regarding anticipated construction, development, or acquisition. Additional information concerning potential risk factors that could affect the company's future performance are described from time to time in the company's reports filed with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended December 31, 2001 and the company's Quarterly Reports on Form 10-Q for the quarters ending March 31, 2002, June 30, 2002 and September 30, 2002. These reports may be viewed free of charge at the following website: www.sec.gov . The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. SOURCE Simon Property Group, Inc. CONTACT: Maureen Crampton of Simon Property Group-Forum Shops at Caesars, +1-702-893-3807; or Deborah Munch of Park Place Entertainment-Caesars Palace, +1-702-699-5008; or David Kirvin or Leslie Altemus of Kirvin Doak Communications, +1-702-737-3100.