Tanger said the companies will jointly develop, build, lease and manage the center, which will be located 30 miles outside of Houston in Texas City, Texas. Each company will own half of the venture.
Tanger said the center will include more than 90 brand-name and designer outlet stores and cover 350,000 square feet. It will be built on 55 acres and the companies plan to eventually expand the center by an additional 120,000 square feet.
Tanger, a real estate investment trust, said construction is expected to begin in July and the center is expected to open a year later.
When it's completed, the center is expected to produce 900 full- and part-time jobs.
Tanger is based in Greensboro, N.C., and Simon in Indianapolis.