R.e. Column

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This is expected to be the year that many shopping malls transfer from private to public hands, and Macerich Co. got things started last week by purchasing a portfolio of 12 malls from IBM & #336;s retirement fund.

The Santa Monica-based real estate investment trust forged a partnership with the Indianapolis-based Simon DeBartolo Group Inc., one of the nation & #336;s largest REITs, to undertake the $974.5 million acquisition, which is expected to close in February. The portfolio & #336;s 10.7 million square feet of leasable retail space is about 89 percent occupied.

Six of the 12 malls are in the Central U.S., where most of Macerich & #336;s holdings are located, and the other six are in the Midwest and East, where DeBartolo & #336;s empire is concentrated.

The two REITs, which are normally competitors, will own the portfolio as 50/50 equity partners, with Macerich handling property management of the Central U.S. malls and DeBartolo managing the other six malls.

The REITs had previously discussed partnering for transactions and decided that this particular portfolio would work because it & #327;played into our respective geographic concentrations, & #211; said Arthur Coppola, Macerich & #336;s president and chief executive.

Macerich was already the largest mall operator in the State.

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