General Growth Properties, Inc. and Macerich Announce Property Swap and Cash Deal
June 06 2011 - 7:00AM
Business Wire
General Growth Properties, Inc. (NYSE:GGP) and Macerich
(NYSE:MAC) today announced a deal in which Macerich will acquire
GGP’s 1/3 ownership each of Superstition Springs and Arrowhead
Towne Center, both in the Phoenix market, for a net of $75,000,000
cash to GGP. As part of the deal, GGP will become owner of six
big-box anchor locations in Arizona, California, Illinois and Utah
previously owned by Macerich.
“The success of these two properties [Superstition Springs and
Arrowhead Towne Center] can be attributed to Macerich’s hands-on
partnership over the years. This is an opportunity for both
companies,” said Sandeep Mathrani, chief executive officer for
General Growth Properties, Inc. “This deal not only provides GGP
with additional capital to either pay off debt or reinvest in our
properties, it also helps us further solidify our focus on our core
assets. The six high profile anchor locations will add to GGP’s
bottom line and provide further value for our shareholders.”
The six big box anchor locations include:
- Neiman Marcus at Oakbrook Center
in Chicago, Illinois
- Burlington Coat Factory at Chula
Vista Center in San Diego, California
- Forever 21 at Tucson Mall in
Tucson, Arizona
- Kohl’s at Southland Mall in
Hayward, California
- Former vacant Mervyn’s locations at
Fallbrook Mall in Fallbrook, CA, and Newgate Mall in
Ogden, Utah
“Four of the six anchor/big box locations are leased. The two
currently vacant anchor/big-box locations are vital to our ability
to redevelop those assets," said Sandeep Mathrani.
"Macerich is pleased to conclude this significant
transaction that provides a rationalization of ownership of these
interests to place ownership in the hands of the natural owner. I
totally concur with Sandeep's understanding of the importance of
owning the anchors and their parking fields in one's valuable
malls. It gives an owner great redevelopment flexibility. This is a
transaction that has been a natural conversation for over three
years and we are pleased that with the new leadership team in place
at GGP that it has resulted in an exchange that is good for both
GGP and Macerich," said Art Coppola, chief executive officer of
Macerich.
ABOUT GGP
General Growth Properties has ownership and management interest
in 169 regional and super regional shopping malls in 43 states. The
Company portfolio totals 172 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. For more
information on GGP, visit www.ggp.com.
ABOUT MAC
The Company is the sole general partner and owns a 91% ownership
interest in The Macerich Partnership, L.P. Macerich now owns
approximately 74 million square feet of gross leasable area
consisting primarily of interests in 71 regional malls. Additional
information about Macerich can be obtained from the Company’s
website at www.macerich.com.
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