SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
(RULE 13d-102)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULES 13d-1(b), (c) AND (d) AND AMENDMENTS THERETO FILED
PURSUANT TO RULE 13d-2(b)
(Amendment No. ___________)*
Horizon Group Properties, Inc.
_______________________________________________________________________________
(Name of Issuer)
Common Stock, $.01 par value per share
_______________________________________________________________________________
(Title of Class of Securities)
44041U102
___________________________________
(CUSIP Number)
June 19, 1998
_______________________________________________________________________________
(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this
Schedule is filed:
[ ] Rule 13d-1(b)
[X] Rule 13d-1(c)
[ ] Rule 13d-1(d)
*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which
would alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of
that section of the Act but shall be subject to all other provisions of the
Act (however, see the Notes).
Page 1 of 5 pages
<PAGE>
___________________________________ ---------------
CUSIP No. 44041U102 13 G Page 2 of 5
- ----------------------------------- ----------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. I DENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
Security Capital Preferred Growth Incorporated
- -------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Maryland
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
218,182 Shares of Common Stock
--------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY -0- Shares
OWNED BY -------------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON 218,182 Shares of Common Stock
WITH -------------------------------------------------------
8 SHARED DISPOSITIVE POWER
-0- Shares
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
218,182 Shares of Common Stock
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
[ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
7.77% of the Shares of Common Stock
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 2 of 5 pages
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Item 1(a). Name of Issuer:
Horizon Group Properties, Inc.
(b). Address of Issuer's Principal Executive Offices:
5000 Hakes Drive, Norton Shores, Michigan 49441
Item 2(a). Name of Person Filing:
Security Capital Preferred Growth Incorporated, a
corporation organized and existing under the laws of
Maryland ("SCPG").
(b). Address of Principal Business Office or, if None, Residence:
11 South LaSalle Street, 2nd Floor, Chicago, Illinois 60603
(c). Citizenship:
Maryland
(d). Title of Class of Securities:
Common Stock, $.01 par value per share ("Common Stock")
(e). CUSIP Number:
44041U102
Item 3. If this statement is filed pursuant to Rule 13d-1(b), or
13d-2(b) or (c), check whether the person filing is a:
(a) [ ] Broker or dealer registered under Section 15 of the
Exchange Act;
(b) [ ] Bank as defined in Section 3(a)(6) of
the Exchange Act;
(c) [ ] Insurance company as defined in Section 3(a)(19) of
the Exchange Act;
(d) [ ] Investment company registered under Section 8 of
the Investment Company Act;
(e) [ ] An investment adviser in accordance with Rule
13d-1(b)(1)(ii)(E);
(f) [ ] An employee benefit plan or endowment fund in
accordance with Rule 13d-1(b)(1)(ii)(F);
(g) [ ] An parent holding company or control person in
accordance with Rule 13d- 1(b)(1)(ii)(G);
(h) [ ] A savings association as defined in Section 3(b) of
the Federal Deposit Insurance Act;
(i) [ ] A church plan that is excluded from the definition
of an investment company under Section 3(c)(14) of
the Investment Company Act;
(j) [ ] Group, in accordance with Rule 13d-1(b)(1)(ii)(J).
Page 3 of 5 pages
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Item 4. Ownership.
(a). Amount Beneficially Owned:
SCPG beneficially owns 218,182 shares of Common Stock,
consisting of 181,818 shares of Common Stock and 36,364
Horizon Group Properties, L.P. Common Units which are
freely convertible into Common Stock.
(b). Percent of Class:
7.77% of the Common Stock determined in accordance with
the provisions of Rule 13d-1 promulgated under the Act.
(c). Number of shares as to which such person has:
(i). Sole power to vote or to direct the vote:
SCPG has the sole power to vote or direct the
vote of 218,182 shares of Common Stock.
(ii). Shared power to vote or to direct the vote:
None.
(iii). Sole power to dispose or to direct the disposition of:
SCPG has the sole power to dispose or to direct
the disposition of 218,182 shares of Common Stock.
(iv). Shared power to dispose or to direct the disposition of:
None.
Item 5. Ownership of Five Percent or Less of a Class.
Not applicable.
Item 6. Ownership of More than Five Percent on Behalf of Another Person.
Not applicable.
Item 7. Identification and Classification of the Subsidiary Which Acquired the
the Security Being Reported on By the Parent Holding Company.
Not applicable.
Item 8. Identification and Classification of Members of the Group.
Not applicable.
Page 4 of 5 pages
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Item 9. Notice of Dissolution of a Group.
Not applicable.
Item 10. Certification.
By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were not acquired and are not held
for the purpose of or with the effect of changing or influencing the
control of the issuer of the securities and were not acquired and are not
held in connection with or as a participant in any transaction having that
purpose or effect.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Date: June 29, 1998
SECURITY CAPITAL PREFERRED GROWTH INCORPORATED
By:_____________________________________________
Name: Jeffrey C. Nellessen
Title: Treasurer & Secretary
Page 5 of 5 pages
