CBL CBL and Associates Properties Inc

CBL & Associates Properties, Inc. (NYSE: CBL) today announced that it has entered into an agreement to acquire a 70% joint venture interest in Laurel Park Place in Livonia (Detroit), MI, from Schostak Brothers & Company. The Company acquired the interest for a total consideration of $82.2 million ($50.9 million represents debt held by the joint venture to which the property is subject), including closing costs. CBL will receive a preferred return on its equity equal to 100% of the property's net cash flow. The Company has also retained the right to purchase the remaining joint venture interest for $14.0 million in cash or Special Common Units (SCUs) of the Operating Partnership, at the Company's option. The initial yield, based on income in-place and a purchase price of $82.2 million, is 8.52%. As previously mentioned, the joint venture holds approximately $50.9 million of non-recourse debt at an interest rate of 8.5%, maturing in 2012. The Company will finance the balance of the purchase with approximately $1.0 million of cash and through the issuance of SCUs of CBL's Operating Partnership estimated at a value of approximately $30.0 million, issued at a 25% premium to the average closing price of CBL's common stock for the five days preceding the closing date. The SCUs will be entitled to receive an initial annual dividend of 6.5% and will be exchangeable on a one-for-one basis for shares of CBL's common stock. CBL expects the transaction to close within the next 30-days. "Laurel Park Place is another great opportunity for us to create value through our regional mall expertise," said Stephen Lebovitz, president of CBL & Associates Properties Inc. "The shopping center is well-located, situated on the corner of a highly-trafficked intersection within an affluent Detroit suburb. With the implementation of our aggressive leasing and marketing strategy we are confident that we can further enhance the performance of this mall." Laurel Park Place is anchored by Parisian's, the areas first Von Maur and more than 75 specialty stores including Ann Taylor, Chico's, Talbots, California Pizza Kitchen, and Williams-Sonoma. The 505,000 square foot shopping center is located on 31 acres in the western Detroit suburb of Livonia at the intersection of Six Mile Road and Interstate 275. The mall was originally built in 1989 and expanded in 1994. It is currently 85.5% occupied and achieved sales per square foot of $409 per square foot in 2004. CBL & Associates Properties, Inc. is the fourth largest mall REIT in North America and the largest owner of malls and shopping centers in the Southeast, ranked by GLA. CBL owns, holds interests in or manages 167 properties, including 70 enclosed regional malls. The properties are located in 29 states and total 73.5 million square feet including 2.0 million square feet of non-owned shopping centers managed for third parties. CBL currently has nine projects under construction totaling approximately 1.5 million square feet. The projects include two open-air shopping centers located in Ft. Myers, FL, and Memphis (Southaven, MS), TN, one associated center, three community centers and three expansions. In addition to its office in Chattanooga, TN, CBL has a regional office in Boston (Waltham), MA. Additional information can be found at http://cblproperties.com Information included herein contains "forward-looking statements" within the meaning of the federal securities laws. Such statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual events, financial and otherwise, may differ materially from the events and results discussed in the forward-looking statements. The reader is directed to the Company's various filings with the Securities and Exchange Commission, including without limitation the Company's Annual Report on Form 10-K and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" incorporated by reference therein, for a discussion of such risks and uncertainties.