TIAA-CREF and CBL Close $1.09 Billion Real Estate Joint Venture
October 06 2011 - 4:45PM
Business Wire
TIAA-CREF and CBL & Associates Properties, Inc. (NYSE: CBL),
today announced the closing of their $1.09 billion real estate
joint venture to invest in market dominant shopping malls.
TIAA-CREF has completed its investment in four of CBL’s market
dominant shopping malls: Oak Park Mall in Kansas City, KS; West
County Center in St. Louis, MO; CoolSprings Galleria in Nashville,
TN; and Pearland Town Center in Pearland, TX.
“With the ongoing disconnect in public versus private market
valuations, we believe this transaction provides us with the most
advantageous source of monetizing the equity value in our
portfolio,” said Stephen Lebovitz, CBL’s president & chief
executive officer. “TIAA-CREF’s investment strengthens our balance
sheet and partners us with a well-capitalized institution to pursue
new opportunities.”
TIAA-CREF has $17 billion (6/30/11) of primarily high-quality
properties in the office, retail, industrial and multifamily
sectors across the U.S., Canada, and Western Europe.
“We believe dominant regional malls are an important part of a
well-diversified real estate portfolio, and this investment
alongside CBL allows us to expand our presence in this sector,”
said Philip McAndrews, managing director and head of global real
estate transactions and joint ventures, TIAA-CREF. “This investment
in super regional malls with CBL is part of our strategy to invest
in assets that provide durable income streams with enduring long
term values.”
TIAA-CREF received a 50 percent pari passu interest in the three
enclosed malls, including Oak Park Mall, West County Center and
CoolSprings Galleria, and a 12 percent interest in Pearland Town
Center. In total, CBL reduced outstanding debt balances by
approximately $486 million through TIAA-CREF’s assumption of
approximately $267 million of property-specific debt and cash
proceeds of approximately $219 million. CBL continues to manage and
lease the properties.
Eastdil Secured acted as CBL’s exclusive financial advisor in
arranging this joint venture.
About TIAA-CREF
TIAA-CREF (www.tiaa-cref.org) is a national financial services
organization with $469 billion in combined assets under management
(as of 6/30/11) and is the leading provider of retirement services
in the academic, research, medical and cultural fields.
TIAA-CREF Individual & Institutional Services, LLC and
Teachers Personal Investors Services, Inc., members FINRA,
distribute securities products.
About CBL & Associates Properties,
Inc.
CBL is one of the largest and most active owners and developers
of malls and shopping centers in the United States. CBL owns, holds
interests in or manages 158 properties, including 85 regional
malls/open-air centers. The properties are located in 27 states and
total 85.3 million square feet including 3.6 million square feet of
non-owned shopping centers managed for third parties. Headquartered
in Chattanooga, TN, CBL has regional offices in Boston (Waltham),
MA, Dallas (Irving), TX, and St. Louis, MO. Additional information
can be found at 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 CBL's various filings with the Securities and Exchange
Commission, including without limitation the CBL'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.
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