David Bloom, Chairman and Chief Executive Officer, said: "We are pleased to have been able to complete this transaction before the end of the third quarter. We have had our managerial and financial resources in place and now look forward to actively managing these properties. This transaction is expected to be immediately accretive to Chelsea's funds from operations."

Chelsea Property Group is a fully integrated, self-managed and self-administered real estate investment trust (REIT) that wholly or partially owns leading outlet properties including Woodbury Common Premium Outlets, outside New York City; Desert Hills Premium Outlets, near Palm Springs, California; Orlando Premium Outlets, in Orlando, Florida; Wrentham Village Premium Outlets, near Boston; and Gotemba Premium Outlets, outside Tokyo, Japan. For more information, please visit http://www.cpgi.com

Statements in this news release that are not strictly historical are "forward-looking" statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although Chelsea Property Group believes that the expectations reflected in such statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Forward-looking statements involve known and unknown risks that may cause actual results to differ materially from expected results. Risk factors include, without limitation, the availability and cost of capital; credit risk; the Company's ability to lease its properties; retail, real estate and economic conditions; competition; and other risks detailed from time to time in Chelsea Property Group's reports to the Securities and Exchange Commission. The Company accepts no responsibility for updating forward-looking statements.