Simon Property Group Inc.’s majority-owned partnership subsidiary, Simon Property Group L.P., has agreed to sell $2.25 billion of its senior unsecured notes in an underwritten public offering. The offering will be conducted with Citigroup Global Markets Inc., Morgan Stanley & Co. Inc., RBS Securities Inc. and Barclays Capital Inc., as joint book-running managers, and Calyon Securities (USA) Inc., Fifth Third Securities Inc. , Morgan Keegan & Co. Inc., RBC Capital Markets Corp. , Scotia Capital (USA) Inc. and SunTrust Robinson Humphrey Inc., as co-managers.
The offering consists of $400 million of 4.20 percent notes due 2015, $1.25 billion of 5.65 percent notes due 2020 and $600 million of 6.75 percent notes due 2040. The 2015 notes were priced at 99.78 percent of the principal amount to yield 4.25 percent to maturity, the 2020 notes were priced at 99.62 percent of the principal amount to yield 5.70 percent to maturity, and the 2040 notes were priced at 99.44 percent of the principal amount to yield 6.79 percent to maturity. The offering is expected to close on January 25, 2010.
Simon will use the net proceeds from this offering primarily to fund the cash purchase of certain senior notes issued by it or its subsidiary that are tendered pursuant to the offer to purchase it commenced on January 12, 2010, and for general business purposes.
Simon has been a frequent issuer of notes in the past 12 months. Back in March 2009, when credit markets were virtually shut down, Simon sold $650 million worth of senior notes priced at 10.35 percent. The notes were priced at 97.578 percent of the principal amount to yield 10.75 percent to maturity. In May, conditions had improved enough that a new $600 million senior notes offering by Simon was priced at 6.75 percent. The notes were priced at 98.960 percent of the principal amount to yield 7.00 percent to maturity. Then, by August, Simon had re-priced the May issue. In that adjustment, the notes were priced at 105.029 percent of the principal amount plus accrued interest from May 15, 2009 to yield 5.46 percent to maturity.
HFF Closes Trio of Retail Deals
Holliday Fenoglio Fowler L.P. announced the closings of three retail deals this week by its Dallas office.
The first sale involved the 84,322-square-foot Plaza at Cottonwood power center in Albuquerque, N.M., which traded for an undisclosed price.
The HFF investment sales team was led by senior managing directors Doug Hazelbaker and Jim Batjer and managing director Ryan Shore, who marketed the property exclusively on behalf of the seller, Weingarten Realty Investors. North American Development Group purchased the fully occupied property.
HFF’s Dallas Office also closed on the sale of the 249,671-square-foot DeVargas Center in Santa Fe, New Mexico.
Hazelbaker, Batjer, Shore and senior managing director Chris Turner led the investment sales team exclusively on behalf of the Weingarten. Fidelis Realty Partners Ltd. purchased the property, which was 95 percent occupied, for an undisclosed price.
The last deal involved the sale of the 160,000-square-foot Woodlake Crossing shopping center in San Antonio, Texas.
Hazelbaker and Shore represented the seller, David Berndt Interest Ltd.. Inland American, an entity of The Inland Real Estate Group of Cos. purchased the property, which was 81 percent occupied, for an undisclosed price.
The Shopping Center Group Wins Receivership Assignments
The Shopping Center Group was awarded three receivership assignments by the State Courts of Alabama, Florida and South Carolina for retail properties totaling 266,000 square feet in key markets within these states.
As the court‐appointed receiver, the retail advisory firm now operates and manages the shopping centers, pursuant to court order, in an effort to preserve the value of the retail asset as lenders and borrowers work to resolve outstanding loan issues.
The company is responsible for property and asset management, leasing and, ultimately, disposition.
Colliers Directs Three Single-Tenant Retail Sales
Colliers International directed the sale of three single-tenant, free-standing retail buildings occupied by Ryan’s Grill Buffet & Bakery on behalf of an undisclosed New York-based institutional hedge fund. The properties, located in North Carolina, South Carolina and Pennsylvania, sold for a combined $4.9 million.
Maurice Nieman and Ian Schroeder, both vice presidents in Colliers International’s Irvine, Calif. office, represented the seller in each of the transactions.
In the first transaction, a building located at 2900 E. Franklin Blvd. was sold to Bean Station, Tenn.-based HMH Holdings LLC for approximately $1.6 million. The buyer was represented by Big South Properties LLC.
In the second transaction, a building located at 1635 Lincoln Way E. was sold to Chambersburg, Pa.-based Divinity Investments LLC for approximately $1.7 million. Nieman and Schroeder also represented the buyer in the transaction.
In the third transaction, a building located at 3940 Grandview Dr. in South Carolina was sold to Simpsonville, S.C.-based Chang Real Estate LLC for approximately $1.6 million. The buyer was represented by Spectrum Commercial Properties
Other Notable Deals
CB Richard Ellis Group Inc. announced that General Electric (GE) has renewed its agreement with CBRE to provide real estate transaction management services for GE's global real estate portfolio. GE's portfolio comprises more than 300 million square feet and 4,700 properties in over 100 countries. Under the new agreement CBRE will provide strategic transaction management services, including leasing, property sales and other transaction services throughout GE's global operations. Craig Hendrickson, Senior Managing Director, CB Richard Ellis Global Corporate Services, serves as the Global Relationship Manager for the GE assignment working with CBRE professionals in the Americas, EMEA (Europe Middle East Africa) and the Asia-Pacific regions.
The San Diego office of Cushman & Wakefield announces that Grant Family Trust has sold a 3,000-square-foot retail building in La Palma, Calif. for $610,000. The seller was represented by Kam Walton and Nick Alford of the Cushman & Wakefield Retail Advisory Team. The buyer, Community Development Commission of the City of La Palma, represented itself.