SANTA MONICA, Calif., Nov. 2 /PRNewswire/ -- The Macerich Partnership, L.P. and Ontario Teachers' Pension Plan Board today announced that Lakewood Mall, Stonewood Mall and Los Cerritos Center were contributed to a joint venture owned approximately 51% by Macerich and 49% by Ontario Teachers' Pension Plan Board. The three super regional malls, each located in Los Angeles County, serve a trade area of approximately 1.8 million people.
The total value of the transaction is approximately $535 million. The properties were contributed to the venture subject to existing debt of $322 million. The net proceeds to Macerich of $104 million will be used for reduction of debt and for general corporate purposes.
The addition of these three super regional malls brings the total value in the Macerich/Ontario Teachers' Pension Plan Board joint venture, known as Pacific Premier Retail Trust ("PPRT"), to over $1,000,000,000. The joint venture was established in February, 1999 when the joint venture acquired the Safeco Portfolio of four dominant properties in the Pacific Northwest, including Redmond Towne Center and Washington Square. PPRT now owns six regional malls and one mixed use project totaling 7.9 million square feet.
Commenting on the transaction, Edward Coppola, Executive Vice President of The Macerich Company, stated, "This is a portfolio of very productive properties that dominate a major trade area in Los Angles County. Combined, these properties have over 4 million square feet of gross leaseable area and generate almost $900 million in total annual sales. The centers contain a total of 14 department stores and the specialty tenants' sales average over $325 per square foot. Given the operating synergy of these three malls and our desire to attract a significant infusion of private capital into the company, this represented an ideal opportunity to expand our strategic relationship with Ontario Teachers' Pension Plan Board.
This will represent Ontario Teachers' third major investment with Macerich. In June 1998, Ontario Teachers' invested in $150 million of convertible preferred stock of Macerich and in the first half of 1999 Ontario Teachers' Pension Plan Board and Macerich invested $544 million to form PPRT and acquire the Safeco portfolio." With approximately CDN $60 billion in assets, the Ontario Teachers' Pension Plan Board is the largest single pension fund in Canada and ranks among the nation's top financial institutions. The Ontario Teachers' real estate portfolio owns CDN $3 billion in real estate. Brian Muzyk, Vice President - real estate of Ontario Teachers' commented, "We are excited to have the opportunity to add these dynamic properties to our portfolio and enhance our existing relationship with Macerich as a partner and major shareholder."
Property Anchors Mall and Mall Store Mall Sales
Freestanding Occupancy PSF 1998
GLA Y/E 1998
Lakewood Mall Robinson-May 1,851,000 98.0% $327
Lakewood, JC Penney, Mervyns
California Montgomery Ward
and Macy's (4Q2000)
Los Cerritos Nordstrom, Macy's 1,306,000 97.8% $338
Center Robinson-May
Sears and Mervyns
Cerritos,
California
Stonewood Mall JC Penney, Mervyns 927,000 86.9% $309
Robinson-May, Sears
Downey,
California
The Macerich Company (NYSE: MAC) is a fully integrated self-managed and self-administered real estate investment trust, which focuses on the acquisition 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 shopping centers totaling 41 million square feet in 48 regional malls and five community centers. Additional information about The Macerich Company can be obtained on the company's web site at www.macerich.com.
SOURCE The Macerich Company