Macerich Co., a real estate investment trust that owns stakes in 63 U.S. malls, is continuing its quest for upscale malls across the U.S. by agreeing to acquire Wilmorite Properties Inc. and Wilmorite Holdings L.P. on Thursday for nearly $2.3 billion.
The deal includes roughly $1.1 billion in cash, the assumption of $882 million in debt and the issuance of $320 million in convertible Macerich units to Wilmorite stake holders. Macerich, based in Santa Monica, will assume Wilmorite’s interests in 11 regional malls and two open-air community centers in Connecticut, New York, New Jersey, Kentucky and Virginia totaling 13.4 million square feet.
Rochester, N.Y.-based Wilmorite has malls in its portfolio that cater to wealthier shoppers with upscale stores. Some of these malls include the Tysons Corner Center in Virginia, the Freehold Raceway Mall in New Jersey and Danbury Fair Mall in Connecticut. Those three, along with Macerich’s recently expanded Queens Center in New York, have combined total annual retail sales in excess of $2 billion.
After the deal goes through Macerich, which is currently creating plans to redevelop Santa Monica Place mall, will own 74 regional malls with a total portfolio square footage increasing to approximately 75.4 million square feet.
Macerich shares dropped 4 percent to close at $61.53 on Thursday.