SANTA MONICA, Calif.
June 6, 2011 /PRNewswire/ -- The
Macerich Company (NYSE: MAC) and General Growth Properties, Inc.
(NYSE: GGP) today announced a deal for the sale to Macerich of
GGP's 1/3 ownership interest of Superstition Springs Mall and
Arrowhead Towne Center, both in the Phoenix, AZ market, together with the purchase
of six big-box anchor locations in Arizona, California, Illinois and Utah for a net of $75,000,000 cash to GGP.
"The success of these two properties 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. We are now in possession of six high
profile anchor locations that will add to GGP's bottom line and
provide further value for our shareholders."
"Macerich is pleased to have been able to conclude this
significant transaction which 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 as it gives an owner great redevelopment
flexibility. This is a transaction that has been a natural
conversation for over 3 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 MAC," said Arthur Coppola, Macerich's Chairman and Chief
Executive Officer
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.
The two malls involved in the exchange average over $430 per square foot in sales, are over 95%
occupied and are anchored by Dillard's, J.C. Penney, Macy's and Sears.
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.
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.
SOURCE Macerich Company