SHARES in Liberty International Plc, the largest owner of United Kingdom shopping centers, rose the most in five months last Friday after Simon Property Group Inc disclosed a stake of more than 3 percent.
Simon Property, the biggest United States owner of malls, bought acquired voting rights over 12.5 million Liberty shares, the London-based company said last Friday in a statement obtained by Bloomberg News.
"They're trying to take advantage of what they perceive is value in a high-quality European retail portfolio," said Jonathan Miniman, a vice president at ING Clarion Real Estate Securities, which held 3.9 percent of Simon shares as of June 30. "Liberty International has one of the best, if not the best" collections of British malls, he said.
Liberty has fallen 12 percent this year as consumer spending slows. Appraised values of British shopping centers and retail outlets slid 9 percent in the six months ended June 30, Investment Property Databank Ltd said.
That's the fourth consecutive quarter UK retail properties have lost value, as a curb in lending by banks has dried up investment demand.
Former Liberty chairman Donald Gordon, 78, and family trusts own about a 25-percent stake in the company. Simon's holding "gives them a seat at the table" should the family choose to liquidate their position, Miniman said.