Forum Shops owner buys terror insurance

Thursday, March 28, 2002 | 11:17 a.m.

SUN STAFF AND WIRE REPORTS

INDIANAPOLIS -- Simon Property Group Inc. said it bought $200 million in terrorism insurance for its shopping centers, half of that for the Mall of America, the United States' largest shopping mall.

The two $100 million policies were purchased from Lexington Insurance Co., a subsidiary of American International Group, Simon said in a statement.

On the Las Vegas Strip, Simon owns the Forum Shops at Caesars. It's the nation's most successful mall when measured by sales per square foot.

The move settles the company's dispute with GMAC Commercial Mortgage Corp., which had sued in federal court in Bloomington, Minn., to force Simon to buy terrorism coverage for the 78-acre Mall of America property outside of Minneapolis, Simon said.

No purchase price was disclosed, although the premium "is substantially less than that which GMAC originally intended to impose" on the mall's owners, Chief Executive Officer David Simon said in the statement. The other mall owners are Teachers Insurance and Annuity Association and the Triple Five Corp.

Triple Five is a big Las Vegas real estate developer.

GMAC is the Mall of America's principal lender. The second $100 million policy will protect the rest of the company's shopping centers. Simon has interests in 250 other properties, spread across 36 states, and has assets in Canada and Europe, the company said.