Forty years after his father, Alfred, founded Taubman Centers Inc., Robert “Bob” Taubman took the reins of the company as president and CEO in 1990 and took it public in 1992.
Taubman Centers, an international public real estate development company that creates extraordinary retail environments for shoppers, merchants, communities and investors, has thrived under Taubman’s leadership. That leadership was tested in 2002 with the attempt of a hostile takeover, but Taubman and his employees fought off the assault, and the company has continued to thrive; by the end of 2003, its stock was trading at more than three times the offer of the hostile takeover. Its stock generated a 50.8 percent return on investment in 2006 and a compound annual average return of 22 percent over the last 10 years.
Taubman understands that he must take risks every day, but investing in a poor property can have devastating results. So to help minimize risks, Taubman is very selective in which projects the company takes on, and only about 5 percent of deals presented to the company are executed.
And while competitors focused on consolidation and growth through acquisition, Taubman reduced his company’s risk by recycling properties, a process in which he develops new properties while prior ones are sold, allowing the company to recycle its capital to fuel its development pipeline.
Moving forward, Taubman Centers is targeting a long-term growth rate of 8 percent to 10 percent. And to promote continued growth, it has formed Taubman Asia, a wholly owned subsidiary with projects under way in South Korea and Macao.
HOW TO REACH: Taubman Centers Inc., (248) 258-6800 or www.taubman.com