CHICAGO, Aug. 16 /PRNewswire/ -- General Growth Properties, Inc.
(NYSE: GGP) today announced the acquisition of Tucson Mall in Tucson, Arizona
from a private partnership. The aggregate consideration paid was
approximately $180 million. General Growth financed the purchase with a
short-term acquisition loan and an advance under its line of credit. Later
this year, the company expects to obtain a long-term non-recourse permanent
mortgage loan to replace a majority of the interim funding. The property is
expected to produce approximately $15 million of net operating income during
calendar year 2002.
Tucson Mall was originally developed in 1982 and underwent an expansion in
1991. It is a two level mall that is comprised of approximately 1.3 million
square feet. Macy's, Robinson-May, Dillard's, Mervyn's, JCPenney, and Sears
anchor the center. The center has approximately 409,000 square feet of mall
shop space, is currently 92% occupied, and produces sales of approximately
$411 per square foot.
"We are very pleased to buy Tucson Mall. It will greatly enhance our
existing position in the Tucson market. Adding Tucson Mall to our ownership
of Park Place, on the east side of Tucson, gives us over 2.6 million square
feet of retail space in the community. We can now offer retailers two
excellent locations in the same geographic area. We expect to create
tremendous synergies between the two properties through improved results in
management, marketing, leasing and specialty leasing," said John Bucksbaum,
CEO of General Growth Properties.
General Growth Properties, Inc. 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 145
regional shopping malls in 39 states. The company portfolio totals
approximately 125 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 and its
portfolio of malls, please visit the company web site at http://www.generalgrowth.com
.
This release may contain forward-looking statements that involve risks and
uncertainties. Actual future performance, outcomes and results may differ
materially from those expressed in forward-looking statements as a result of a
number of risks, uncertainties and assumptions. Representative examples of
these factors 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, shifts in customer
demands, tenant bankruptcies, changes in operating expenses, including
employee wages, benefits and training, governmental and public policy changes
and the continued availability of financing in the amounts and the terms
necessary to support future business. Readers are referred to the documents
filed by General Growth Properties, Inc. 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
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Company News On-Call:
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CONTACT:
John Bucksbaum, +1-312-960-5005, or Bernard
Freibaum, +1-312-960-5252, both of General Growth Properties,
Inc.
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