CHICAGO, April 8 /PRNewswire-FirstCall/ -- General Growth Properties, Inc.
(NYSE: GGP) today announced the execution of an agreement to acquire Victoria
Ward, Limited, a privately held real estate corporation.
The principal Victoria Ward assets include 65 fee simple acres in Kakaako,
central Honolulu, Hawaii, currently improved with over one million square feet
of leasable area. Included in the acquisition is one of Hawaii's most popular
entertainment, shopping and dining districts, which includes Ward
Entertainment Center, Ward Warehouse, Ward Village and Village Shops. In
total, Victoria Ward currently has 29 buildings and 17 ground leases
containing approximately 600,000 square feet of retail space, as well as
approximately 700,000 square feet of office, commercial and industrial
properties.
The total acquisition price will be approximately $250 million, including
the assumption of approximately $50 million of existing short-term debt. The
$200 million of new funding will come from a combination of secured and
unsecured debt. During the first twelve months of ownership, General Growth
expects to generate an unleveraged return on cost of approximately 8.5%. The
closing of the acquisition is subject to the satisfaction of customary closing
conditions and is currently anticipated to take place on or before July 31,
2002.
"We are very pleased to acquire the Victoria Ward properties and enhance
our already successful investment, Ala Moana Center, in Hawaii," said John
Bucksbaum, Chief Executive Officer of General Growth Properties. "Victoria
Ward and Ala Moana will complement each other. Victoria Ward is located
within two blocks of Ala Moana Center at its closest point."
General Growth Properties is one of the nation's largest shopping center
owners, managers and developers. General Growth currently has ownership
interest in, or management responsibility for, a portfolio of 142 regional
shopping malls in 39 states. The company portfolio totals approximately 126
million square feet of retail space and includes over 15,000 retailers
nationwide. A publicly traded Real Estate Investment Trust (REIT), General
Growth Properties is listed on the New York Stock Exchange under the symbol
GGP. For more information on General Growth Properties, visit the company
web site at http://www.generalgrowth.com .
This release may contain forward-looking statements that involve risks and
uncertainties. All statements other than statements of historical fact are
statements that may be deemed forward-looking statements, which are subject to
a number of risks, uncertainties and assumptions. Representative examples of
these risks, uncertainties and assumptions include (without limitation)
general industry and economic conditions, interest rate trends, cost of
capital and capital requirements, availability of real estate properties,
competition from other companies and venues for the sale/distribution of goods
and services, changes in retail rental rates in the Company's markets, shifts
in customer demands, tenant bankruptcies or store closures, changes in vacancy
rates at the Company's properties, changes in operating expenses, including
employee wages, benefits and training, governmental and public policy changes,
changes in applicable laws, rules and regulations (including changes in tax
laws), the ability to obtain suitable equity and/or debt financing, and the
continued availability of financing in the amounts and on the terms necessary
to support the Company's future business. Readers are referred to the
documents filed by the Company with the SEC, specifically the most recent
reports on Forms 10-K and 10-Q, which identify important risk factors which
could cause actual results to differ from those contained in the forward-
looking statements.
SOURCE General Growth Properties, Inc.
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Related links:
http://www.generalgrowth.com
Company News On-Call:
http://www.prnewswire.com/comp/110740.html
CONTACT:
John Bucksbaum, +1-312-960-5005, or Bernie
Freibaum, +1-312-960-5252, both of General Growth Properties,
Inc.
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