Merger Creates Huge Real Estate Empire

Simon Property Group and DeBartolo Realty Corp. agreed to a $3 billion deal Tuesday that will create North America’s largest real estate company by joining two of the pioneers of regional shopping malls.

Simon Property Group, which manages the sprawling Mall of America in Bloomington, Minn., will acquire Youngstown, Ohio-based DeBartolo for $1.5 billion in stock and will assume $1.5 billion in DeBartolo’s debt.

The new Indianapolis-based company, Simon DeBartolo Group, will own 110 million square feet in retail space - more than twice as much as any other company - and have a total market value of $7.5 billion, the companies said.

The combined business will operate 111 regional shopping centers, 65 community centers and six specialty retail centers in 32 states.