General Growth Properties, Inc. announced agreements to acquire a 100 percent interest in both Saint Louis Galleria in St. Louis, MO, and Coronado Center in Albuquerque, NM, from two different institutional owners. The company also announced an agreement to acquire the 49 percent ownership interest in GGP Ivanhoe III currently held by joint venture partner Ivanhoe Cambridge, thereby increasing its ownership interest to a full 100 percent. The agreement to acquire Coronado Center is subject to signing definitive documentation and all three of the acquisitions remain subject to the satisfaction of customary closing conditions.
The aggregate consideration for all of these acquisitions is anticipated to be approximately $869 million. Approximately $243 million of existing mortgage debt will be assumed in connection with the GGP Ivanhoe III acquisition. The balance of the aggregate consideration, or approximately $626 million, will be funded using a combination of new acquisition loans, draws on an unsecured credit facility and new mortgage loans on currently unencumbered properties.
The two new properties and increased share of previously owned malls are currently anticipated to produce approximately $73 million of property net operating income during the 12 month period from July 1, 2003 through June 30, 2004. Saint Louis Galleria and Coronado Center are expected to close in the second half of June and the acquisition of the additional 49 percent interest in GGP Ivanhoe III malls is expected to close in early July.
Saint Louis Galleria opened in 1986 and was last renovated and expanded in 1991. The two-level center is just over 1.2 million square feet and is anchored by Dillard's, Lord & Taylor, Famous-Barr, and Mark Shale. In-line specialty retail space comprises approximately 430,000 square feet. The center is currently 96 percent occupied with sales productivity of approximately $505 per square foot.
Coronado Center opened in 1964 and was most recently renovated in 1995. The center is over 1.1 million square feet, with approximately 400,000 square feet of in-line specialty retail space. Anchors include Foley's, Sears, J.C. Penney, Macy's, and Mervyn's. Coronado Center is currently 94% occupied with sales productivity of approximately $354 per square foot.
GGP Ivanhoe III is currently owned 51% by the company and 49% by an affiliate of Ivanhoe Cambridge of Montreal, Quebec, Canada. General Growth has agreed to purchase Ivanhoe's share of GGP Ivanhoe III. The properties included in this transaction are Landmark Mall, Alexandria (Washington DC), Virginia; Mayfair, Wauwatosa (Milwaukee), Wisconsin; Meadows Mall, Las Vegas, Nevada; Park City Center, Lancaster (Philadelphia), Pennsylvania; Oglethorpe Mall, Savannah, Georgia; Oak View Mall, Omaha, Nebraska; and Northgate Mall, Chattanooga, Tennessee. Eastridge Mall in San Jose, California, currently part of GGP Ivanhoe III, will be transferred to a new joint venture, GGP Ivanhoe IV, with General Growth continuing to own 51 percent and Ivanhoe Cambridge continuing to own the remaining 49 percent.
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