Macerich and Cadillac Fairview Corporation Capitalize on Decade-Long Partnership to Create New Joint Venture
July 30 2009 - 4:25PM
PR Newswire (US)
New Partnership in Macerich's Dominant Queens Center Generates $150
Million SANTA MONICA, Calif., July 30 /PRNewswire-FirstCall/ -- The
Macerich Partnership, L.P., the operating partnership of Macerich
(NYSE:MAC), and long-time partner The Cadillac Fairview Corporation
Limited today announced a joint venture in Macerich's dominant New
York City asset, Queens Center. Queens Center is a
966,499-square-foot urban retail development anchoring Queens,
N.Y., one of the most concentrated and dynamic markets in New York
City. The property produces annual mall sales (spaces 10,000 square
feet or less) of $876 per square foot as of year-end 2008, making
it the top-performing asset in Macerich's portfolio of high-quality
retail real estate in the country's most powerful markets. Queens
Center leads the industry as one of the most productive regional
shopping centers in the United States. Macerich purchased Queens
Center in 1995 and, in 2004, transformed the property with a
redevelopment and expansion that added approximately 380,000 square
feet of new specialty shop space and an adjacent parking structure
connected to the center via pedestrian bridge. Year-end 2008
occupancy was 97.5%. Queens Center is anchored by highly successful
JCPenney and Macy's department stores and features approximately
165 specialty retailers and restaurants. Under the terms of the
deal, Macerich receives approximately $150 million in net cash and
Cadillac Fairview acquires 49% interest in the asset. "Strategic
joint ventures are at the core of Macerich's business model and
this deal makes it possible for Macerich and Cadillac Fairview to
build on a partnership that spans more than a decade and has
delivered strong results, both from a financial and a real estate
perspective," said Macerich President Edward C. Coppola. "Queens
Center is the first in a series of transactions in the execution of
our joint venture strategy, through which we expect to raise $500
million in equity." "This is a very powerful partnership and,
particularly given the challenging economic environment, Macerich
and Cadillac Fairview had an opportunity to leverage an
already-lucrative partnership that will deliver value over time,"
noted Andrea Stephen, Executive Vice President of Investments for
Cadillac Fairview. "Very few companies have the ability to
accomplish a deal of this nature in this environment, and this is
exactly why the Macerich/Cadillac Fairview partnership model is a
competitive strength." This is the eighth regional shopping center
to be joint ventured for the two entities: Macerich and Cadillac
Fairview co-own seven of the country's top-performing regional
shopping centers in California and the Pacific Northwest, including
Lakewood Center and Los Cerritos Center in greater Los Angeles and
Washington Square in Portland, Ore. The longstanding partnership
began in 1999. Like the other assets in the long-time partnership,
Macerich will continue to manage the property, with the added value
of Cadillac Fairview's expertise as an investor and partner in
best-of-class real estate assets. "This acquisition gives us a
once-in-a-generation opportunity to enter New York, one of the
world's most valuable markets at what is arguably the best retail
site," commented Peter Sharpe, Cadillac Fairview's Chief Executive
Officer. "That the asset is a Macerich property adds even greater
value - we know from experience that this is a partnership that
delivers results." 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 76
million square feet of gross leasable area consisting primarily of
interests in 72 regional malls. Additional information about
Macerich can be obtained from the Company's Web site at
http://www.macerich.com/. The Cadillac Fairview Corporation Limited
is one of North America's largest investors, owners and managers of
commercial real estate. For more than 50 years Cadillac Fairview
has been leading the way in commercial real estate with innovative
design, development and management. Cadillac Fairview focuses on
developing and managing high quality office properties and regional
shopping centres in Canada and the United States, as well as
international investments in real estate companies and investment
funds. With a portfolio valued at more than $16 billion and nearly
50 million square feet of leasable space, Cadillac Fairview and its
affiliates own and manage 84 properties across North America.
Cadillac Fairview is wholly-owned by the Ontario Teachers' Pension
Plan, which invests to secure the retirement income of 284,000
active and retired teachers in Ontario. For more information please
visit us at http://www.cadillacfairview.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 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; 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, 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. 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 Anita Walker, +1-602-953-6550, all
of Macerich; or Janine Ojah-Maharaj of Cadillac Fairview,
+1-416-598-8208 Web Site: http://www.macerich.com/
http://www.cadillacfairview.com/
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