DES MOINES, Iowa - Simon Property Group Inc. said Tuesday it will buy the outlet shopping centers owned by Prime Outlets Acquisition Co., solidifying its position as the nation's largest public real estate company.

Indianapolis-based Simon is paying $700 million in cash and securities. It said that including assumption of debt and preferred stock, the deal is valued at $2.33 billion.

Prime Outlets, based in Baltimore, owns, manages, operates and develops 22 outlet centers in major metropolitan areas including Washington, Orlando and one in the Tampa Bay area.

Once the deal is completed, Simon will have 63 outlet centers, totaling about 25 million square feet.

Simon also owns regional malls and other assets. At the end of the third quarter, the company owned 387 properties, about 262 million square feet, including sites in Europe and China.

Under the terms of the agreement, Simon will pay about $700 million for the owners' interests in Prime Outlets, comprising 80 percent of existing cash on hand and 20 percent in Simon common operating partnership units. The price will be based on a 10-day trading average of Simon common stock shortly before closing.

Simon expects the transaction to add immediately to its cash flow from operations, a widely used gauge of real estate operating performance.