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Macerich Announces Completion of $1.475 Billion Acquisition of Westcor

SANTA MONICA, Calif., Jul 29, 2002 /PRNewswire-FirstCall via COMTEX/ -- The Macerich Partnership L.P., the operating partnership of The Macerich Company (NYSE: MAC), today announced that it has completed its acquisition of Westcor Realty Limited Partnership and its affiliated companies ("Westcor"). Westcor is the dominant owner, operator and developer of regional malls and specialty retail assets in the greater Phoenix area.

The total purchase price was approximately $1.475 billion including the assumption of $733 million in existing debt and the issuance of approximately $72 million of convertible preferred operating partnership units at a price of $36.55 per unit. Each preferred operating partnership unit is convertible into a common operating partnership unit. The balance of the purchase price was paid in cash which was provided primarily from a $380 million interim loan with a term of up to 18 months bearing interest at an average rate of LIBOR plus 3.25% and a $250 million term loan with a maturity of up to five years with an interest rate ranging from LIBOR plus 2.75% to LIBOR plus 3.00% depending on the Company's overall leverage.

Concurrent with the closing the Company also replaced its $200 million line of credit with a new $425 million revolving line of credit. This increased line of credit has a three-year term plus a one-year extension. The interest rate fluctuates from LIBOR plus 1.75% to LIBOR plus 3.00% depending on the Company's overall leverage level. At closing the interest rate was 4.82%. Co-lead arrangers on the credit facilities were Deutsche Bank Securities Inc. and JP Morgan Securities Inc.

The assets acquired include some of the leading retail assets in the country, including Scottsdale Fashion Square and Chandler Fashion Center in the Phoenix area and FlatIron Crossing in Colorado's Denver-Boulder area. The gross leasable area in the Westcor portfolio totals 15.6 million square feet (see attached schedule). In addition, the Westcor portfolio includes two retail properties in Arizona that recently broke ground, as well as option rights for over 1,000 acres of valuable, well-situated undeveloped land.

Deutsche Bank Securities, Inc. acted as financial advisor to Macerich for the transaction.

The Macerich Company is a fully integrated self-managed and self-administered real estate investment trust, which focuses on the acquisition, leasing, management and redevelopment of regional malls and community centers throughout the United States. The Company is the sole general partner and owns a 78% ownership interest in The Macerich Partnership, L.P. Macerich now owns interests in 56 regional malls and 21 community centers totaling approximately 58 million square feet. Additional information about The Macerich Company can be obtained from the Company's web site at www.macerich.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, tenant bankruptcies, lease rates and terms, 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; 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, for a discussion of such risks and uncertainties.

                           WESTCOR PROPERTY LISTING

                                                 Year Built/
                                   Location        Expanded        Ownership
     Regional Malls
      Scottsdale      Scottsdale (Phoenix),  1961/1991/1998           50%
       Fashion                      Arizona
       Square
      Flagstaff Mall             Flagstaff,       1979/1986          100%
                                    Arizona
      Paradise Valley Mall         Phoenix,       1979/1990          100%
                                    Arizona
      Desert Sky Mall              Phoenix,       1981/1993           50%
                                    Arizona
      Superstition Springs
       Center               Mesa (Phoenix),       1990/1994           33%
                                    Arizona
      Arrowhead Towne
       Center           Glendale (Phoenix),            1993           33%
                                    Arizona
      FlatIron Crossing         Broomfield,            2000           50%
                                   Colorado
      Chandler Fashion
       Center           Chandler (Phoenix),            2001          100%
                                    Arizona


                                      GLA excluding   Mall shop
                           Total        Department    Sales Per    March 2002
                            GLA           stores      Square Ft.    Occupancy

     Regional Malls
      Scottsdale Fashion
       Square            1,930,832       591,249        $550           94%
      Flagstaff Mall       352,788       148,776        $320           81%
      Paradise Valley
       Mall              1,222,353       391,779        $384           96%
      Desert Sky Mall      887,494       280,480        $275           79%
      Superstition Springs
       Center            1,060,461       342,291        $366           91%
      Arrowhead Towne
       Center            1,130,610       346,540        $402           89%
      FlatIron Crossing  1,495,912       684,236        $386           94%
      Chandler Fashion
       Center            1,294,481       532,196      opened
                                                       10/01           96%

       Mall sub-totals:  9,374,931     3,317,547        $407           92%


                                            Department Stores

     Regional Malls
      Scottsdale Fashion Square    Dillards, Macy's, Neiman-Marcus,
                                   Nordstrom, Robinsons-May, (2)Harkins
      Flagstaff Mall               Dillards, JC Penney, Sears
      Paradise Valley Mall         Dillards, JC Penney, Macy's,
                                   Robinsons-May, Sears, Harkins Theater
      Desert Sky Mall              Dillards, Mervyn's, Burlington Coat
                                   Factory, Sears, Harkins Theater
      Superstition Springs Center  Dillards, JC Penney, Mervyn's,
                                   Robinsons-May, Sears, Super Saver Cinema
      Arrowhead Towne Center       Dillards, JC Penney, Mervyn's,
                                   Robinsons-May, Sears (3/02), AMC
      FlatIron Crossing            Dillards, Nordstrom, Foleys,
                                   Lord & Taylor, Gaylans, AMC
      Chandler Fashion Center      Dillards, Nordstrom, Robinsons-May, Sears,
                                   Harkins Theatre


                                                 Year Built/
                                   Location        Expanded        Ownership

     Regional Malls -
      Under Development

      Prescott Gateway            Prescott,            2002          100%
                                    Arizona


                                      GLA excluding   Mall shop
                           Total        Department    Sales Per    March 2002
                            GLA           stores      Square Ft.    Occupancy

     Regional Malls -
      Under Development
      Prescott Gateway     566,706       303,266 opened 3/02           61%
      Mall Totals        9,941,637     3,620,813


                                            Department Stores

    Regional Malls -
      Under Development
      Prescott Gateway             Dillards, JC Penney, Sears


                                                 Year Built/
                                   Location        Expanded        Ownership

     Urban Villages
      Arizona Lifestyles
       Galleries                   Phoenix,            1982           50%
                                    Arizona
      Paradise Village
       Gateway                     Phoenix,       1995/2001           67%
                                    Arizona
      PVIC - ground
       leases                      Phoenix,         various           50%
                                    Arizona
      Village Center               Phoenix,            1985           50%
                                    Arizona
      Village Crossroads           Phoenix,            1993           50%
                                    Arizona
      Village Fair                 Phoenix,            1989           50%
                                    Arizona
      Village Plaza                Phoenix,            1978          100%
                                    Arizona
      Village Square I             Phoenix,            1978          100%
                                    Arizona
      Village Square II            Phoenix,            1978          100%
                                    Arizona
      Camelback Colonnade          Phoenix,      1961-1976,
                                    Arizona            1994           75%

      Promenade                   Sun City,            1983           50%
                                    Arizona
      Superstition Springs
       Power Cntr.          Mesa (Phoenix),            1991          100%
                                    Arizona
      Chandler Festival Chandler (Phoenix),            2001           50%
                                    Arizona
      Chandler Gateway  Chandler (Phoenix),       2001-2002           50%
                                    Arizona
      Chandler Blvd
       (existing)       Chandler (Phoenix),       2001-2002           50%
                                    Arizona
      Chandler Blvd
       (11 pads)        Chandler (Phoenix),       2002-2004           50%
                                    Arizona
      Westbar                      Phoenix,         various           75%
                                    Arizona


                                      GLA excluding   Mall shop
                           Total        Department    Sales Per    March 2002
                            GLA           stores      Square Ft.    Occupancy

    Urban Villages
      Arizona Lifestyles
       Galleries           125,092       125,092                      100%
      Paradise Village
       Gateway             223,104       223,104                      100%
      PVIC -ground leases  245,540       245,540                       N/A
      Village Center       195,191       195,191                      100%
      Village Crossroads   187,336       187,336                      100%
      Village Fair         272,617       272,617                       97%
      Village Plaza        110,612       110,612                       96%
      Village Square I     136,890       136,890                      100%
      Village Square II    147,615       147,615                       96%
      Camelback Colonnade  588,137       588,137                       97%
      Promenade             70,125        70,125                       93%
      Superstition Springs
       Power Cntr.         279,144       279,144                      100%
      Chandler Festival    367,795       367,795                       90%
      Chandler Gateway     255,955       255,955                       93%
      Chandler Blvd
       (existing)           51,582        51,582                       57%
      Chandler Blvd
       (11 pads)           113,800       113,800               To be built
      Westbar              898,005       898,005                       N/A


                                      GLA excluding   Mall shop
                           Total        Department    Sales Per    March 2002
                            GLA           stores      Square Ft.    Occupancy

    Urban Villages
      Arizona Lifestyles
       Galleries           125,092       125,092                      100%
      Paradise Village
       Gateway             223,104       223,104                      100%
      PVIC -ground leases  245,540       245,540                       N/A
      Village Center       195,191       195,191                      100%
      Village Crossroads   187,336       187,336                      100%
      Village Fair         272,617       272,617                       97%
      Village Plaza        110,612       110,612                       96%
      Village Square I     136,890       136,890                      100%
      Village Square II    147,615       147,615                       96%
      Camelback Colonnade  588,137       588,137                       97%
      Promenade             70,125        70,125                       93%
      Superstition Springs
       Power Cntr.         279,144       279,144                      100%
      Chandler Festival    367,795       367,795                       90%
      Chandler Gateway     255,955       255,955                       93%
      Chandler Blvd
       (existing)           51,582        51,582                       57%
      Chandler Blvd
       (11 pads)           113,800       113,800               To be built
      Westbar              898,005       898,005                       N/A


                                                    Majors

     Urban Villages
      Arizona Lifestyles Galleries Thomasville, Home One Furniture, Stratford
                                   Antiques, Colorado Retreat
      Paradise Village Gateway     Bed, Bath & Beyond, Ross, PETsMART,
                                   Staples, Albertsons, Walgreens, Garcias
      PVIC -ground leases          Mervyn's, BJ's Auto Spa, Coco's, Chili's,
                                   Red Lobster, Olive Garden, Houlihans
      Village Center               Comp USA, Target, REI
      Village Crossroads           Michael's, Burlington Coat, Outback
                                   Steakhouse, Don Pablos
      Village Fair                 Office Max, Ulta, Sports Authority,
                                   Toys R Us, Strouds, Best Buy
      Village Plaza                Sun Foods Market, Osco
      Village Square I             Circuit City, TJ Maxx
      Village Square II            Mervyn's, Big 5, Marie Callendar's
      Camelback Colonnade          Marshalls, Fry's, Best Buy, Mervyn's,
                                   Last Chance, Michael's, Old Navy,
                                   PETsMART, MCI
      Promenade                    York Furniture
      Superstition Springs
       Power Cntr.                 Ross, Best Buy, Service Merchandise,
                                   Burlington Coat, Walmart, Olive Garden
      Chandler Festival            Ultimate Elec, PETsMART, Nordstrom Rack,
                                   Lowe's, Ross, TJ Maxx, Linens & Things,
                                   Office Max
      Chandler Gateway             Razmataz, Circuit City, Great Indoors,
                                   Paddy O Furniture, Olive Garden, B of A,
                                   Abuelos
      Chandler Blvd (existing)     PF Chang's, Compass Bank
      Chandler Blvd (11 pads)
      Westbar                      Circuit City, Old Navy, Premier Inn,
                                   Wyndham Hotel, Cost Plus, UA,
                                   Barnes & Noble


                                                 Year Built/
                                   Location        Expanded        Ownership

    Specialty Retail
      Borgata                   Scottsdale,            1981          100%
                                    Arizona
      Shops at Gainey Village   Scottsdale,            2000           50%
                                    Arizona
      Hilton Village            Scottsdale,            1982           50%
                                    Arizona


                                      GLA excluding   Mall shop
                           Total        Department    Sales Per    March 2002
                            GLA           stores      Square Ft.    Occupancy

     Specialty Retail
      Borgata               87,724        87,724                       87%
      Shops at Gainey
       Village             138,319       138,319                       95%
      Hilton Village        96,640        96,640                       97%


                                                    Majors

    Specialty Retail
      Borgata                      Specialty Shops
      Shops at Gainey Village      Garduno's, Bloom
      Hilton Village               Houston's, Bank One, Wells Fargo


                                                 Year Built/
                                   Location        Expanded        Ownership


     Development Projects
      Scottsdale 101  Scottsdale (Phoenix),            2003           46%
                                    Arizona
      La Encantada                  Tucson,       2002-2004          100%
                                    Arizona


                                      GLA excluding   Mall shop
                           Total        Department    Sales Per    March 2002
                            GLA           stores      Square Ft.    Occupancy

     Development Projects
      Scottsdale 101       629,000       629,000               To be built
      La Encantada         258,000       258,000               To be built


                                                    Majors

     Development Projects
      Scottsdale 101
      La Encantada                 Harkin's Theatre, Circuit City, Expo,
                                   Bed, Bath & Beyond


                                                 Year Built/
                                   Location        Expanded        Ownership

    Office
      Scottsdale Fashion
       Office          Scottsdale(Phoenix),            1989           50%
                                    Arizona
      Paradise Village
       Office Park                 Phoenix,            1982           50%
                                    Arizona


                                      GLA excluding   Mall shop
                           Total        Department    Sales Per    March 2002
                            GLA           stores      Square Ft.    Occupancy

     Office
      Scottsdale Fashion
       Office              123,581       123,581                       88%
      Paradise Village
       Office Park          46,650        46,650                       94%


                                                    Majors

     Office
      Scottsdale Fashion Office    Norwest Bank, Net Pro Computing,
                                   Vision Offices
      Paradise Village
       Office Park                 SW Risk Services, Cimato & Assoc,
                                   Churchill Mortgage


                                      GLA excluding   Mall shop
                           Total        Department    Sales Per    March 2002
                            GLA           stores      Square Ft.    Occupancy

     Total Non-Mall      5,648,454     5,648,454        $280           96%

     Total Portfolio    15,590,091     9,269,267


SOURCE:
The Macerich Company

CONTACT:
Arthur Coppola, President and Chief Executive Officer, or
Thomas E. O'Hern, Executive Vice President and Chief Financial Officer, both
of The Macerich Company, +1-310-394-6000

URL:
http://www.macerich.com
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