Washington Prime Group’s Joint Venture with O’Connor Acquires 180,000 SF Section at Pearlridge Center
March 02 2017 - 6:01PM
Business Wire
Washington Prime Group Inc. (NYSE: WPG) today announced
that the Company, together with O’Connor Mall Partners, L.P.
(“O’Connor”), has acquired an additional section at Pearlridge
Center located in Aiea, Hawaii, for a gross purchase price of $70.0
million. Pearlridge Center is currently comprised of two distinct
enclosed venues commonly referred to as Uptown and Downtown. The
newly acquired 180,000-square-foot section, which is part of
Uptown, is anchored by Ross Dress for Less and TJ Maxx and is 91%
occupied.
Lou Conforti, CEO and Director stated: “This transaction results
in the complete control of Pearlridge Center under one operator.
Gaining control was quite important as we commence with the
previously announced redevelopment project with our partner,
O'Connor. Also appealing is the immediate accretion as we are
acquiring a 91% occupied parcel anchored by TJ Maxx and Ross Dress
for Less.”
O’Connor is the partner in the Company’s joint venture that owns
the property. The Company’s pro rata share of the purchase price is
approximately $35.7 million. The joint venture plans to place
approximately $40 million of secured debt on the property during
the second quarter of 2017. Washington Prime Group has initially
funded its share of the purchase price with funds from the
Company’s credit facility until the debt is placed.
Fred Paine, General Manager of Pearlridge Center added: “The
consolidation of Pearlridge Center under one management and leasing
team will streamline operations and further enhance the customer
experience. We welcome the new Uptown tenants and look forward to
providing our customers an enhanced mix of retail and dining
options.”
The Company announced in January 2017 a $33 million
redevelopment project at Pearlridge Center which includes a
significant remodel of Downtown consisting of new tenants, a
contemporary dining space, new interior and exterior finishes and
updated entranceways. Also part of the overall redevelopment
project are specialty grocery store Down to Earth, which will move
to an expanded freestanding space; a Bank of Hawaii financial
services center; Pieology; Five Guys Burgers and Fries; and
innovative menswear retailer Lindbergh.
O’Connor Mall Partners, L.P., is an affiliate of O’Connor
Capital Partners.
About Pearlridge Center
Pearlridge Center is a 1.3 million-square-foot super-regional
shopping center located in Aiea off of Kamehameha Highway. It is
Hawaii’s largest indoor retail center and features Oahu’s only
monorail system. The 55-acre property consists of Uptown and
Downtown complexes offering more than 220 retail, dining and
entertainment options. Learn more at www.pearlridgeonline.com.
About Washington Prime Group
Washington Prime Group Inc. is a retail REIT and a recognized
leader in the ownership, management, acquisition and development of
retail properties. The Company combines a national real estate
portfolio with an investment grade balance sheet, leveraging its
expertise across the entire shopping center sector to increase cash
flow through rigorous management of assets and provide new
opportunities to retailers looking for growth throughout the U.S. A
trademark application has been filed with the U.S. Patent and
Trademark Office for the name “Washington Prime Group” and is
currently pending. Learn more at www.washingtonprime.com.
Forward-Looking Statements
This news release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995
which represent the current expectations and beliefs of management
of Washington Prime Group Inc. (“WPG”) concerning the proposed
transactions, the anticipated consequences and benefits of the
transactions and the targeted close date for the transactions, and
other future events and their potential effects on WPG, including,
but not limited to, statements relating to anticipated financial
and operating results, the company’s plans, objectives,
expectations and intentions, cost savings and other statements,
including words such as “anticipate,” “believe,” “plan,”
“estimate,” “expect,” “intend,” “will,” “should,” “may,” and other
similar expressions. Such statements are based upon the current
beliefs and expectations of WPG’s management, and involve known and
unknown risks, uncertainties, and other factors which may cause the
actual results, performance, or achievements of WPG to be
materially different from future results, performance or
achievements expressed or implied by such forward-looking
statements. Such factors include, without limitation: changes in
asset quality and credit risk; ability to sustain revenue and
earnings growth; changes in political, economic or market
conditions generally and the real estate and capital markets
specifically; the impact of increased competition; the availability
of capital and financing; tenant or joint venture partner(s)
bankruptcies; the failure to increase mall store occupancy and
same-mall operating income; risks associated with the acquisition,
development, expansion, leasing and management of properties;
changes in market rental rates; trends in the retail industry;
relationships with anchor tenants; risks relating to joint venture
properties; costs of common area maintenance; competitive market
forces; the level and volatility of interest rates; the rate of
revenue increases as compared to expense increases; the financial
stability of tenants within the retail industry; the restrictions
in current financing arrangements or the failure to comply with
such arrangements; the liquidity of real estate investments; the
impact of changes to tax legislation and WPG’s tax positions;
failure to qualify as a real estate investment trust; the failure
to refinance debt at favorable terms and conditions; loss of key
personnel; material changes in the dividend rates on securities or
the ability to pay dividends on common shares or other securities;
possible restrictions on the ability to operate or dispose of any
partially-owned properties; the failure to achieve earnings/funds
from operations targets or estimates; the failure to achieve
projected returns or yields on development and investment
properties (including joint ventures); expected gains on debt
extinguishment; changes in generally accepted accounting principles
or interpretations thereof; terrorist activities and international
hostilities; the unfavorable resolution of legal proceedings; the
impact of future acquisitions and divestitures; assets that may be
subject to impairment charges; significant costs related to
environmental issues; and other risks and uncertainties, including
those detailed from time to time in WPG’s statements and periodic
reports filed with the Securities and Exchange Commission,
including those described under “Risk Factors”. The forward-looking
statements in this communication are qualified by these risk
factors. Each statement speaks only as of the date of this press
release and WPG undertakes no obligation to update or revise any
forward-looking statements to reflect subsequent events or
circumstances. Actual results may differ materially from current
projections, expectations, and plans, if any. Investors, potential
investors and others should give careful consideration to these
risks and uncertainties.
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version on businesswire.com: http://www.businesswire.com/news/home/20170302006446/en/
Washington Prime Group Inc.Kimberly A. Green, VP, Investor
Relations & Communications,
614-887-5647kim.green@washingtonprime.comorHawaii Media:Deborah
Sharkey, 808-3498221
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