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Taubman to Sell 7 Malls to Starwood For $1.4B

Deal Expected to Close in Fourth Quarter Will Help Taubman Increase NAV, Fund Development Pipeline
June 18, 2014
An affiliate of Starwood Capital Group has agreed to buy a portfolio of seven shopping malls in five states from Taubman Centers, Inc. (NYSE: TCO).

Starwood Retail Partners will pay $785 million cash and assume or repay $620 million of debt in the deal, approved by Taubman's board of directors and expected to close in the fourth quarter, Taubman said in a statement.

The malls in the transaction include MacArthur Center, 937,000 square feet, Norfolk, VA; Stony Point Fashion Park, 662,000 square feet, Richmond, VA; Northlake Mall, 1.07 million square feet, Charlotte, NC; The Mall at Wellington Green, 1.2 million square feet, Wellington, FL; The Shops at Willow Bend, 1.38 million square feet, Plano, TX; The Mall at Partridge Creek, 600,00 square feet, Clinton Township, MI; and Fairlane Town Center, 1.97 million square feet, Dearborn, MI.

The transaction, capitalizing on investor hunger for high-quality regional malls, is part of Bloomfield Hills, MI-based Taubman's ongoing capital recycling effort to fund new development, maximize the performance of its portfolio and increase net asset value for investors.

"As a result of these sale transactions, the company's development and redevelopment pipeline will have an even greater impact on our growth," said Chairman, President and CEO Robert S. Taubman.

The move continues Greenwich, CT-based Starwood's effort to aggressively grow its retail business. Starwood acquired a majority interest in a seven-mall portfolio from Westfield Group in November.

The assets will expand Starwood Retail's retail holdings to 28 properties totaling 26.8 million square feet in 15 states.

"The Taubman portfolio broadens our relationships with higher end department stores and in-line tenants," noted Barry Sternlicht, chairman and CEO of Starwood Capital Group.

Eastdil Secured, LLC, represents Taubman in the transaction.
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