Taubman To Sell Seven Malls To Starwood Capital Group For $1.4 Bln - Quick Facts

(RTTNews) - Taubman Centers, Inc. (TCO), a real estate investment trust, and Starwood Capital Group, a global private investment firm, announced a definitive deal, whereby Starwood, through a controlled affiliate, would buy a portfolio comprising seven Taubman malls. Taubman said that the sale is a part of it's ongoing strategy to recycle capital, increase its NOI growth rate and create net asset value for investors over time.

Currently, Taubman Centers owns, leases and/or manages 27 retail properties in 15 states and South Korea. Its portfolio of 24 owned shopping centers is the most productive in the U.S. publicly traded regional mall industry. The company reported mall tenant sales per square foot of $721 in 2013 and upon completion of these transactions, expects its mall tenant sales to increase by over $100 per square foot.

Taubman Centers' chief executive explained, "The seven centers we are selling are strong properties that fit well within the Starwood portfolio and will continue to thrive under their management." On the other hand, Starwood Capital said these assets would expand SRP's retail portfolio to 28 properties totaling 26.8 million square feet across 15 states.

MacArthur Center(Norfolk, Va.); Stony Point Fashion Park(Richmond, Va.); Northlake Mall(Charlotte, N.C.); The Mall at Wellington Green(Wellington, Fla.); The Shops at Willow Bend(Plano, Tex.); The Mall at Partridge Creek(Clinton Township, Mich.); and Fairlane Town Center are the seven malls that are included in the transaction.