CHICAGO, Aug. 27 /PRNewswire-FirstCall/ -- General Growth Properties
(NYSE: GGP) today announced the acquisition of 100% of Lynnhaven Mall in
Virginia Beach, Virginia from an institutional owner.
"With the acquisition of Lynnhaven Mall, General Growth enters and will
now create value in a robust, growing market with strong local and tourist
traffic," said John Bucksbaum, chief executive officer of General Growth
Properties. "A soon to open expansion will add new retailers, entertainment,
and restaurants. We will enhance this well positioned property with our
leasing and redevelopment expertise and we will maximize opportunities to
ensure that the center offers the right retail mix and a strong customer
experience."
The gross consideration for the acquisition was approximately
$256.5 million. The property is expected to generate approximately
$19.95 million of net operating income in calendar year 2004, when the
expansion will be fully operational. The purchase was funded with a 5-year
$180 million non-recourse mortgage loan bearing interest at LIBOR plus 125
basis points and a combination of cash on hand and available credit. The
company is also working on refinancing approximately $317 million of existing
variable rate loans that will be replaced with approximately $403 million of
long-term fixed rate loans by the end of September. The property refinancings
will produce $86 million of excess proceeds that will be used to continue to
grow the business.
Lynnhaven Mall opened in 1981 and was renovated in 1991 and 1996 and
expanded in 1998. The center has approximately 1.3 million square feet and is
anchored by Dillard's, Hecht's, JCPenney, and Lord & Taylor. The property
recently added new retailers and is currently developing a 28,000 square-foot
Barnes and Noble Bookseller, a number of restaurants, and an 18-screen AMC
theater. General Growth will immediately focus on identifying new users for a
vacant 66,000 square foot space that was previously occupied by a department
store. In-line specialty retail space comprises just over 390,000 square
feet. The center is currently over 91% occupied with sales of approximately
$410 per square foot.
General Growth Properties is the country's second largest shopping center
owner, developer and manager of regional shopping malls. General Growth
currently has ownership interests in, or management responsibility for, a
portfolio of 163 regional shopping malls in 39 states. The company portfolio
totals more than 142 million square feet of retail space and includes over
16,000 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. 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
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
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
Photo Notes:http://www.newscom.com/cgi-bin/prnh/19990208/CGM015
PR Newswire Photo Desk, +1-888-776-6555 or +1-212-782-2840
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/110740.html
CONTACT:
Bernie Freibaum, +1-312-960-5252, or Beth
Coronelli, +1-312-960-2750, both of General Growth Properties
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