CHICAGO, Sept. 13 /PRNewswire-FirstCall/ -- General Growth Properties
(NYSE: GGP) today announced the acquisition of Pecanland Mall in Monroe,
Louisiana. General Growth purchased 100% of the enclosed mall from Pecanland
Mall Holdings LLC. The aggregate consideration was approximately $72 million.
It consisted of approximately $22 million of cash which the company had on
hand and the assumption of a $50 million existing loan that bears interest at
6.5% and matures in January of 2005. The property is expected to produce
approximately $7.4 million of net operating income during the next 12 months.
Pecanland Mall opened in 1982. The property is a 984,000 square foot,
enclosed regional mall anchored by Dillard's, Sears, JCPenney, McRae's,
Mervyns and a ten-screen cinema. In-line specialty retail space comprises
approximately 354,000 square feet of the total space. The center is currently
94% occupied and produces sales of approximately $301 per square foot.
"Pecanland represents another excellent opportunity to create value in
real estate," stated John Bucksbaum, Chief Executive Officer of General
Growth. "This property is located in the fast growing region of Northeast
Louisiana. The growth of the area will be a catalyst for increased customer
sales and traffic. Through enhanced management and upgrading of the retail
mix we will have a positive impact on sales, profitability and long-term
positioning of the center. Synergy will also be created in the areas of
management, marketing, leasing and business development with Mall St. Vincent
and Pierre Bossier Mall, two General Growth centers located in Shreveport,
LA."
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 168 regional shopping malls in 41 states. The company portfolio
totals approximately 146 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. 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 John
Bucksbaum, +1-312-960-5005, both of General Growth Properties,
Inc.
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