Macerich Co. agreed to sell minority stakes in eight US malls for US$2.3 billion ($3.3 billion) to GIC and property investor Heitman LLC, a deal that will allow the landlord to pay a special dividend, buy back shares and cut debt.
GIC, in its first deal with Macerich, will own 40% of five malls, and Heitman will have a 49% interest in three, Macerich said in a statement Wednesday. The transactions are scheduled to close in phases starting in October and concluding in the first quarter.
Macerich has been under pressure to boost shareholder value after spurning a takeover offer from Simon Property Group Inc. earlier this year. The US$2.3 billion deal with GIC and Heitman includes US$1.14 billion of proceeds from new financing on five properties as part of the deal, Macerich said.
The company plans to use the proceeds for share buybacks, debt reduction and a special dividend of US$3.50 to US$4.50 a share.
GIC will own stakes in Arrowhead Towne Center in Glendale, Arizona; Lakewood Center in Lakewood, California; Los Cerritos Center in Cerritos, California; Washington Square in Portland, Oregon; and South Plains Mall in Lubbock, Texas.
Heitman will gain interests in Deptford Mall in Deptford, New Jersey; FlatIron Crossing in Broomfield, Colorado; and Twenty Ninth Street in Boulder, Colorado.
“As a long-term value investor, we look forward to partnering with Macerich, one of the premier owners and operators of shopping centers in the US,” Lee Kok Sun, regional head for the Americas at GIC Real Estate, said in the statement.
The properties are valued at a total US$5.4 billion, according to Santa Monica, California-based Macerich.
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GIC, in its first deal with Macerich, will own 40% of five malls, and Heitman will have a 49% interest in three, Macerich said in a statement Wednesday. The transactions are scheduled to close in phases starting in October and concluding in the first quarter.
Macerich has been under pressure to boost shareholder value after spurning a takeover offer from Simon Property Group Inc. earlier this year. The US$2.3 billion deal with GIC and Heitman includes US$1.14 billion of proceeds from new financing on five properties as part of the deal, Macerich said.
The company plans to use the proceeds for share buybacks, debt reduction and a special dividend of US$3.50 to US$4.50 a share.
GIC will own stakes in Arrowhead Towne Center in Glendale, Arizona; Lakewood Center in Lakewood, California; Los Cerritos Center in Cerritos, California; Washington Square in Portland, Oregon; and South Plains Mall in Lubbock, Texas.
Heitman will gain interests in Deptford Mall in Deptford, New Jersey; FlatIron Crossing in Broomfield, Colorado; and Twenty Ninth Street in Boulder, Colorado.
“As a long-term value investor, we look forward to partnering with Macerich, one of the premier owners and operators of shopping centers in the US,” Lee Kok Sun, regional head for the Americas at GIC Real Estate, said in the statement.
The properties are valued at a total US$5.4 billion, according to Santa Monica, California-based Macerich.
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