Macerich and GI Partners Create a New Joint Venture
September 03 2009 - 3:00PM
PR Newswire (US)
New Partnership in Macerich's FlatIron Crossing Mall Generates $116
Million in Proceeds SANTA MONICA, Calif., Sept. 3
/PRNewswire-FirstCall/ -- The Macerich Partnership, L.P., the
operating partnership of Macerich (NYSE:MAC), and GI Partners today
announced a joint venture in Macerich's FlatIron Crossing Mall in
Broomfield, Colo. FlatIron Crossing is a 1.4 million-square-foot
super regional mall anchored by Nordstrom, Macy's, Dick's Sporting
Goods and Dillard's. The 2008 annual tenant sales per square foot
were $443 and the mall currently has a 97% occupancy rate. The mall
was built in 2000 and acquired by Macerich in 2002. Under the terms
of the deal, Macerich receives approximately $116 million in net
cash and GI Partners acquires a 75% interest in the asset. "We are
pleased to embark on this joint venture with GI Partners and
solidify one more long-term partnership that we believe will yield
positive results and new business opportunities for both GI and
Macerich," said Macerich President Edward C. Coppola. "This
transaction is another example of Macerich executing on its
deleveraging strategy by tapping into the capital embedded in a
high-performing retail property." "GI Partners is pleased to
partner with Macerich and have the opportunity to work with one of
the premier teams in retail real estate," remarked Rick Magnuson,
Executive Managing Director at GI Partners. "FlatIron Crossing is
an opportunity to not only create a strategic partnership, but also
secure an ownership position in an asset with significant
fundamental value and upside potential. As a private investor with
a track record of success in the real estate sector, we look
forward to contributing our perspective and closely working with
Macerich to fully realize the value of this unique property." Like
most of its joint ventures, Macerich will continue to manage the
property, with the added value of GI Partners' expertise as a
diversified investor and partner. Macerich is a fully integrated
self-managed and self-administered real estate investment trust,
which focuses on the acquisition, leasing, management, development
and redevelopment of regional malls throughout the United States.
The Company is the sole general partner and owns an 87% ownership
interest in The Macerich Partnership, L.P. Macerich now owns
approximately 75 million square feet of gross leaseable area
consisting primarily of interests in 72 regional malls. Additional
information about Macerich can be obtained from the Company's
website at http://www.macerich.com/. Established in 2001, GI
Partners is a mid-market private equity firm that focuses on
control-oriented investments across North America and Western
Europe in asset-intensive businesses or portfolios of assets. The
Macerich transaction is being completed through GI Partners Fund
III L.P., which has secured $2.0 billion of capital commitments
from leading institutional private equity and real estate
investors. The team at GI Partners has significant experience in
the REIT sector, having created Digital Realty Trust ("DLR"), one
of the best performing REITs over the past five years since its
listing on the NYSE in November 2004. GI Partners seeks to
substantially increase the value of its asset-underpinned
businesses or assets and focuses on a number of key sectors,
including real estate, specialty healthcare, leisure, financial
services and mission-critical IT services. Note: This release
contains statements that constitute forward-looking statements.
Stockholders are cautioned that any such forward-looking statements
are not guarantees of future performance and involve risks,
uncertainties and other factors that may cause actual results,
performance or achievements of the Company to vary materially from
those anticipated, expected or projected. Such factors include,
among others, general industry, economic and business conditions,
which will, among other things, affect demand for retail space or
retail goods, availability and creditworthiness of current and
prospective tenants, anchor or tenant bankruptcies, closures,
mergers or consolidations, lease rates and terms, interest rate
fluctuations, availability, terms and cost of financing and
operating expenses; adverse changes in the real estate markets
including, among other things, competition from other companies,
retail formats and technology, risks of real estate development and
redevelopment, acquisitions and dispositions; the liquidity of real
estate investments, governmental actions and initiatives (including
legislative and regulatory changes); environmental and safety
requirements; and terrorist activities which could adversely affect
all of the above factors. The reader is directed to the Company's
various filings with the Securities and Exchange Commission,
including the Annual Report on Form 10-K for the year ended
December 31, 2008 and the Quarterly Reports on Form 10-Q, for a
discussion of such risks and uncertainties, which discussion is
incorporated herein by reference. The Company does not intend, and
undertakes no obligation, to update any forward-looking information
to reflect events or circumstances after the date of this release
or to reflect the occurrence of unanticipated events unless
required by law to do so. DATASOURCE: Macerich CONTACT: Edward C.
Coppola, President, or Thomas O'Hern, Senior Executive Vice
President and Chief Financial Officer, +1-310-394-6000, or media,
Anita Walker, +1-602-953-6550, all of Macerich; or Kristen Mary,
Director of Investor Relations of GI Partners, +1-650-233-3600 Web
Site: http://www.macerich.com/
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