Updated July 31, 2009:
The California Public Employees’ Retirement System (CalPERS) in a joint venture with First Washington Realty, closed on the first phase of its portfolio transaction with Macquarie CountryWide Trust involving the acquisition of 86 shopping centers in 17 states.
Macquarie previously announced that the first phase of this deal involved the sale of a 45% interest in the portfolio for $778.5 million to Global Retail Investors (the CalPERS - First Washington joint venture). On July 31, CalPERS said it closed on a $463 million transaction for the portfolio, which would leave First Washington's portion of the first phase at $315.5 million.
CalPERS said that this portfolio is substantially comprised of the same shopping centers it sold to Macquarie in a 2005 portfolio transaction, under which Macquarie acquired a 75% interest in 100 centers from CalPERS/First Washington for an amount reflecting a total portfolio value of $2.74 billion.
Sixteen of the grocery store-anchored shopping centers in the portfolio are located in the San Francisco, Los Angeles and San Diego metropolitan areas, said CalPERS.
Original Story Published 7/20/2009:
On July 17, Australia-based Macquarie CountryWide Trust ("MCW") announced that agreements were reached to sell its 75% interest in a portfolio of 86 U.S. shopping centers it owns with Regency Centers (NYSE:
REG) for a total sale price of $1.3 billion.
Macquarie said the sale price reflects a 9.1% cap rate and for the calendar year 2009, Macquarie valued the portfolio at $1.73 billion. When closed, the deal would eliminate a significant amount of CMBS debt for the Trust. MCW said this portfolio transaction would close in phases over the next 24 months.
First, 45% of the interest in the portfolio will be sold to Global Retail Investors (GRI), a joint venture between the California Public Employees' Retirement System (CalPERS) and an affiliate of First Washington Realty, for $778.5 million. This phases is expected to close late this month. The second phase, expected to close March 31, 2010, involves the $346 million sale of a 20% interest in the portfolio (15% to GRI and 5% to Regency or GRI). The third phase of the deal gives Regency the option to purchase MCW's remaining 10% interest in the portfolio. If Regency elects not to exercise this option, GRI will have the rights to acquire the 10% stake for a period of three months.
The total sale price of this deal may change if the portfolio's NOI either fails to meet or exceeds the estimated annual NOI of $157.4 million.
Macquarie said the portfolio accounts for 80% of its U.S. assets. According to its website, MCW's U.S. portfolio includes 162 retail properties, totaling nearly 18 million square feet, in AL, CA, CO, CT, DE, DC, FL, GA, IL, IN, KY, MD, MN, MO, NV, NJ, NC, OH, OR, PA, SC, TN, TX, VA, WA, and WI.
Macquarie CountryWide’s CEO, Steven Sewell, commented on the Trust's investment strategy change, "In response to deteriorating real estate market fundamentals and the subdued refinancing market conditions expected to persist in the US over the medium-term, a number of options were considered. It was determined that the sale of this particular portfolio would deliver the most substantial strengthening of the balance sheet." Going forward, the Trust plans to focus on shopping center in Australia and New Zealand.
In January 2009, MCW / Regency announced the sale of 30 shopping centers to Inland American.
For more on that, click here.
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