Macerich and Heitman Form New Joint Venture
October 01 2009 - 12:00AM
PR Newswire (US)
New Partnership in Macerich's Freehold Raceway Mall and Chandler
Fashion Center Generates $167 Million in Proceeds SANTA MONICA,
Calif., Oct. 1 /PRNewswire-FirstCall/ -- The Macerich Partnership,
L.P., the operating partnership of Macerich (NYSE:MAC), and
Chicago-based real estate investment management firm Heitman today
announced a joint venture in two of Macerich's assets, Freehold
Raceway Mall and Chandler Fashion Center. Freehold Raceway Mall is
a 1,666,812-square-foot regional shopping center anchored by
Nordstrom, Macy's, Lord & Taylor, JCPenney and Sears in
Freehold, New Jersey, the dominant regional shopping center serving
Monmouth County. The property had an occupancy rate of 95% as of
year-end 2008. Macerich purchased the property in 2005 and
completed a 96,000-square-foot expansion and interior remodeling in
2007. Chandler Fashion Center is a 1,325,379-square-foot regional
shopping center anchored by Nordstrom, Dillard's, Sears and Macy's
in Chandler, Arizona. The center was developed in 2001 and was
acquired by Macerich in 2002. The property had an occupancy rate of
96% as of year-end 2008. Both Chandler and Freehold had 2008 tenant
sales per square foot of approximately $500. Under the terms of the
deal, Macerich receives $167.5 million in net cash proceeds and
Heitman acquires a joint venture interest of 49.9% and assumes a
pro rata share of the property level debt. "We are extremely
pleased to be announcing the formation of a new joint venture with
Heitman," said Macerich Chairman and Chief Executive Officer Art
Coppola. "Macerich's business model was founded on investing in
best-in-class real estate - and in aligning our company with
partners that have complementary investment objectives. Like
Macerich, Heitman is focused on high-quality real estate and we are
very pleased to be entering into a partnership with a
well-positioned institution that we have known for many years."
Similar to other joint ventures, Macerich will continue to manage
the properties, with the added value of Heitman's expertise as an
investor and partner in quality commercial real estate assets. "We
have done business with Macerich and its principals for almost 20
years. We view this as an attractive opportunity to expand the
relationship by partnering with one of the industry's premier
regional mall operators in two established and irreplaceable
fortress malls situated in affluent markets. Macerich has a history
of delivering results, and that fits well with our focus on
identifying real estate investments that perform well today and
that we expect will deliver significant value over time to our
investors," noted Maury Tognarelli, Chief Executive Officer of
Heitman. 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. Macerich maintains a website at
http://www.macerich.com/. Founded in 1966 and headquartered in
Chicago, Heitman manages approximately $20 billion in assets
invested directly and indirectly in real estate in North America,
Europe and Asia. The firm's clients include US and international
institutions, pension plans, endowments and foundations, and
individual investors. Additional information about Heitman can be
obtained from their website at http://www.heitman.com/. 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, Chief
Financial Officer and Treasurer, +1-310-394-6000, or Media, Anita
Walker, +1-602-953-6550, all of Macerich; or Rick Matthews of
Rubenstein, +1-212-843-8267, for Heitman Web Site:
http://www.macerich.com/ http://www.heitman.com/
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