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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) December 29, 1997
THE MACERICH COMPANY
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(Exact Name of Registrant as Specified in Charter)
Maryland 1-12504 95-4448705
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
233 Wilshire Boulevard, Suite 700, Santa Monica, CA 90401
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(Address of Principal Executive Offices)
Registrant's telephone number, including area code (310) 394-6911
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N/A
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(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events
The Macerich Company, a Maryland corporation (the
"Registrant"), announced the formation of a 50/50 joint venture with Simon
DeBartolo Group, Inc. to acquire a portfolio of twelve regional malls for an
aggregate purchase price of $974,500,000. To announce the acquisition of the
portfolio, the Registrant and Simon DeBartolo Group, Inc., jointly issued a
press release on December 29, 1997, which included the following information:
Simon DeBartolo Group, Inc. (NYSE:SPG) and The Macerich Company (NYSE:MAC) today
announced the formation of a 50/50 joint venture to acquire a portfolio of
twelve regional malls. The seller is ERE Yarmouth on behalf of one of its
pension fund clients.
The properties in the portfolio comprise 10.7 million square feet of gross
leasable area (GLA) and are located in eight states. Occupancy of the portfolio
is approximately 89% and sales per square foot for the malls are trending over
$260 for 1997.
The acquisition has been approved by each company's Board of Directors and a
contract has been signed. Completion of the acquisition is subject to customary
closing conditions. The transaction is expected to be completed in February
1998.
Under terms of the contract, the venture will pay $974.5 million for the
portfolio, including the assumption of $485 million of debt which bears interest
at a current blended rate of 7% and matures in 2003 and 2006. The initial
unleveraged yield from this transaction based upon in-place income is 8.75%, and
the venture expects the yield to be in excess of 9% for the first year of
operations.
The properties to be acquired are:
Property Name Location Total GLA Anchors
- --------------------------- ------------------------- -------------- --------------------------------------------------
Empire Mall Sioux Falls, SD 1,305,040 Younkers, JCPenney, Sears, Dayton's, Kohl's,
Target
- --------------------------- ------------------------- -------------- --------------------------------------------------
Eastland Mall Evansville, IN 1,085,124 JCPenney, Lazarus, Famous Barr, DeJong
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NorthPark Mall Davenport, IA 1,057,080 Younkers, VonMaur, JCPenney, Sears,
Montgomery Ward
- --------------------------- ------------------------- -------------- --------------------------------------------------
Granite Run Mall Media, PA 1,048,167 JCPenney, Sears, Boscov's
- --------------------------- ------------------------- -------------- --------------------------------------------------
SouthPark Mall Moline, IL 1,034,542 JCPenney, Sears, Younkers, VonMaur,
Montgomery Ward
- --------------------------- ------------------------- -------------- --------------------------------------------------
SouthRidge Mall Des Moines, IA 1,023,393 Sears, Younkers, JCPenney, Target,
Montgomery Ward
- --------------------------- ------------------------- -------------- --------------------------------------------------
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Mesa Mall Grand Junction, CO 850,370 Sears, Herberger's, JCPenney, Mervyn's, Target
- --------------------------- ------------------------- -------------- --------------------------------------------------
Rushmore Mall Rapid City, SD 828,995 JCPenney, Sears, Herberger's, Target
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Southern Hills Mall Sioux City, IA 752,768 Younkers, Sears, Target
- --------------------------- ------------------------- -------------- --------------------------------------------------
Lindale Mall Cedar Rapids, IA 694,992 Younkers, VonMaur, Sears
- --------------------------- ------------------------- -------------- --------------------------------------------------
Lake Square Mall Leesburg, FL 560,324 Belk-Lindsey, Sears, JCPenney, Target
- --------------------------- ------------------------- -------------- --------------------------------------------------
Valley Mall Harrisonburg, VA 482,332 JCPenney, Leggett, Watson's, Wal-Mart
- --------------------------- ------------------------- -------------- --------------------------------------------------
Simon DeBartolo Group, Inc., headquartered in Indianapolis, Indiana, is a
self-administered and self-managed real estate investment trust which, through
its subsidiary partnerships, is engaged in the ownership, development,
management, leasing, acquisition and expansion of income-producing properties.
It currently owns or has an interest in 200 properties which consist of existing
regional malls, community shopping centers and specialty and mixed-use
properties and, together with its affiliated management company, owns or manages
approximately 144 million square feet of gross leasable area in 34 states.
Simon Brand Ventures (SBV), a division of SDG, is the world's largest and most
sophisticated mall marketing initiative. Comprised of alliances with nationally
recognized brands such as Visa U.S.A., Microsoft, HFS, CUC, Olsten, AmeriCash,
SMARTALK and Diebold, SBV is designed to deliver greater buying power to Simon
shoppers. Additional Simon DeBartolo Group information is available on the
Company's website at www.simon.com.
The Macerich Company is a fully-integrated, self-administrated and self-managed
real estate investment trust, which focuses on the acquisition and redevelopment
of regional malls throughout the United States. The company owns interests in 26
malls and three community centers totaling 22.3 million square feet. Additional
information about Macerich can be obtained by accessing the company's web site
at www.macerich.com.
ERE Yarmouth is a leading U.S. institutional real estate advisor and manager
with $30 billion in assets under management. The firm is a member of the Lend
Lease Group, a global financial services and real estate company based in
Sydney, Australia.
Note: Statements in this press release which are not historical may be deemed
forward-looking statements within the meaning of the federal securities laws.
Although Simon DeBartolo and Macerich believe the expectations reflected in any
forward-looking statements are based on reasonable assumptions, it can give no
assurance that its expectations will be attained. The reader is directed to both
companies' various filings with the Securities and Exchange Commission,
including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports
on Form 10-K for a discussion of such risks and uncertainties.
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Pursuant to the requirements of the Securities and Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned, hereunto duly authorized.
Date: January 15, 1998
THE MACERICH COMPANY
By: /s/THOMAS O'HERN
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Thomas O'Hern
Senior Vice President
and Chief Financial Officer
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