General Growth Properties, Inc. & Canada Pension Plan Investment Board Form Joint Venture Partnership to Acquire Plaza Fronte...
September 21 2011 - 8:00AM
Marketwired
General Growth Properties, Inc. (NYSE: GGP) ("GGP") and Canada
Pension Plan Investment Board ("CPPIB") today announced a
joint-venture partnership to acquire Plaza Frontenac. As part of
the transaction, CPPIB also will invest in GGP's Saint Louis
Galleria. The joint venture will maintain ownership in the two high
profile malls in the Saint Louis metropolitan area.
Under the joint venture, GGP will own a 55% interest and CPPIB
will own a 45% interest in Plaza Frontenac. CPPIB's acquired
interest in Saint Louis Galleria will be 26%.
The acquisition of Plaza Frontenac represents the addition of a
strong, luxury brand asset, with 482,000 square feet of total
leasable area and in-line sales of more than $500 per square foot.
The mall is one of only nine malls worldwide anchored by both Saks
Fifth Avenue and Neiman Marcus. After the acquisition, GGP will own
and manage three of these nine properties. Saint Louis Galleria is
a super-regional mall with gross leasable area of more than 1
million square feet with in-line sales of more than $585 per square
foot. Saint Louis Galleria is anchored by Macy's, Dillard's and
soon-to-be-opened Nordstrom.
"Plaza Frontenac is certainly a retail gem in the Midwest and we
couldn't be more thrilled to add it to our portfolio. Owning both
Saint Louis Galleria and Plaza Frontenac allows us to further
solidify our presence in the St. Louis trade area and create retail
synergies between the properties so both can flourish," said Shobi
Khan, chief operating officer of General Growth Properties, Inc.
"As much as we are excited with the Frontenac acquisition, we're
equally thrilled to form a prosperous, long-term relationship with
CPPIB. CPPIB has a proven track record as a strong investment
partner and sophisticated commercial real estate investor."
"This joint venture expands the geographic diversity of CPPIB's
U.S. real estate portfolio with the addition of two premier malls,"
said Peter Ballon, VP and Head of Americas, Real Estate
Investments, CPPIB. "We look forward to partnering alongside GGP
whose experienced management team and proven track record are
well-aligned with our strategy to acquire and hold high quality
assets over the long term."
PLAZA FRONTENAC
Plaza Frontenac is a 482,000 square foot high-end luxury center
in St. Louis, MO, with sales per square foot of more than $500.
It's one of nine malls worldwide anchored by both a Saks and Neiman
Marcus; together with Fashion Show (Las Vegas) and Tysons Galleria
(McLean, VA-DC), the addition of Plaza Frontenac will give GGP
ownership of three of the nine. Plaza Frontenac makes its home in
the heart of St. Louis' most affluent demographic area. Plaza
Frontenac's roster of fine dining restaurants includes Brio Tuscan
Grille and Fleming's Steakhouse. Inside, shoppers discover St.
Louis' most fashionable retailers, with more than 65% of them
exclusive to Plaza Frontenac, including Tiffany & Co., Louis
Vuitton, Cole Haan, Sur La Table, BCBG Max Azria, Juicy Couture,
Kate Spade, and L'Occitane.
SAINT LOUIS GALLERIA
Saint Louis Galleria is one of St. Louis' top tourist
destinations, boasting more than 165 specialty stores - more than
25 of which are exclusive within the St. Louis area, including
Anthropologie, The Art of Shaving, The Bose Store, Janie and Jack,
Lacoste, Love Culture, LUSH, Marmi, Restoration Hardware, True
Religion, Urban Outfitters and Vera Bradley. Nordstrom opens this
fall. Outstanding culinary choices include The Cheesecake Factory,
California Pizza Kitchen, Saint Louis Bread Co., and soon-to-open
Black Finn American Grille and Vida Mexican Cantina &
Kitchen.
ABOUT GGP
GGP is one of the nation's largest shopping center owners. GGP
has ownership and management interest in 166 regional and super
regional shopping malls in 43 states. The company portfolio totals
169 million square feet of space. A publicly-traded real estate
investment trust (REIT), GGP is listed on the New York Stock
Exchange under the symbol GGP.
ABOUT CANADA PENSION PLAN INVESTMENT BOARD
The Canada Pension Plan Investment Board (CPPIB) is a
professional investment management organization that invests the
funds not needed by the Canada Pension Plan to pay current benefits
on behalf of 17 million Canadian contributors and beneficiaries. In
order to build a diversified portfolio of CPP assets, the CPPIB
invests in public equities, private equities, real estate,
inflation-linked bonds, infrastructure and fixed income
instruments. Headquartered in Toronto, with offices in London and
Hong Kong, the CPPIB is governed and managed independently of the
Canada Pension Plan and at arm's length from governments. At June
30, 2011, the CPP Fund totaled C$153.2 billion. For more
information about CPPIB, please visit www.cppib.ca.
Contacts: CPPIB Linda Sims Director of media relations (416)
868-8695 lsims@cppib.ca GGP David Keating VP of corporate
communications (312) 960-6325 david.keating@ggp.com
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