Simon Property Group closes takeover of The Mills Corp.

Mall developer sells for $1.64 billion; fate of Chevy Chase offices unclear

Simon takes over management of the Mills portfolio, which includes 20 regional malls and 17 other properties totaling more than 45 million square feet. Simon will integrate the management and administration of the Mills properties into its existing portfolio of 172 regional malls.

A Simon spokesman, Les Morris, said ‘‘details are being studied” as to whether Mills’ Chevy Chase headquarters will remain open. Also, no decision has been made on the employees there, he said.

Calls to Mills officials were not returned. A Mills receptionist said the company’s marketing and communications offices had been closed.

‘‘Simon has a long history of bringing value to acquired properties,” Morris said. ‘‘Simon also believes it is crucial for our properties to be integral part of the communities in which we operate and provide a family-friendly environment. This will continue at the newly acquired properties as well.”

David Simon, the company’s CEO, said in a statement, ‘‘We believe that our significant experience operating both regional malls and outlet centers, substantial resources, previous ownership interest in certain Mills properties and history of successful acquisitions, together with Farallon’s financial resources and expertise, will allow us to improve the performance of these assets.”

In its most recent annual financial filing, Mills reported net income of $232 million for 2004. But the company showed shrinking profits in each quarter of 2005 and a net loss of $15 million for the quarter ended Sept. 30, 2005.

The New York Stock Exchange suspended trading of the Mills stock on April 3 in light of the merger. All Mills directors, except Robert P. Pincus and Cristina L. Rose, resigned for its board.

The Simon deal essentially canceled a Jan.17 merger agreement between Mills and Brookfield Asset Management of Toronto.