CHICAGO, Oct. 14 /PRNewswire-FirstCall/ -- General Growth Properties
(NYSE: GGP) today announced the closing of 100% of Sikes Senter in Wichita
Falls, Texas. The company also announced agreements to acquire 100% of The
Maine Mall in South Portland, Maine and 100% of Glenbrook Square in Fort
Wayne, Indiana. Although completion of the additional purchases is still
subject to customary closing conditions, it is anticipated that both
acquisitions will close on or about October 31, 2003.
"These centers are the single dominant regional mall destinations in the
markets they serve," said John Bucksbaum, chief executive officer, General
Growth Properties. "We have the opportunity to build upon the already strong
performance of three successful properties that will further enhance the
strength of our existing portfolio."
The aggregate consideration for all three acquisitions is approximately
$550 million. The properties are currently expected to generate approximately
$39.1 million of net operating income in calendar year 2004. Each of the
acquisitions will be funded utilizing a combination of 5-year, non-recourse,
variable rate mortgages, cash on hand, and advances under an unsecured
revolving credit facility.
Sikes Senter opened in 1974 and was recently renovated and expanded in
2001. The center has approximately 675,000 square feet and is anchored by
Dillard's, Dillard's Men's, JCPenney, and Sears. The center is approximately
90% occupied with sales of approximately $275 per square foot.
The Maine Mall opened in 1971 and was last renovated in 1993. The
property, anchored by Best Buy, Filene's, JCPenney, Linen's 'n Things, Macy's,
and Sears, has approximately 1.1 million square feet. With current occupancy
at approximately 98%, the center has sales of approximately $465 per square
foot.
Glenbrook Square opened in 1966 and was last renovated in 1998 with the
addition of a department store and new food court. The mall has approximately
1.2 million square feet and is anchored by L.S. Ayers, JCPenney, Marshall
Field's, and Sears. Glenbrook Square is approximately 89% occupied with sales
of approximately $360 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 164 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/comp/110740.html
CONTACT:
Bernie Freibaum, +1-312-960-5252, or Beth
Coronelli, +1-312-960-2750, both of General Growth Properties,
Inc.
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