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– Consolidates ownership in irreplaceable assets, including Queens Center and Washington Square.
– Total consideration includes $673 million of assumed debt and $1.2 billion of common stock issued to JV partner Ontario Teachers’ Pension Plan Board.
SANTA MONICA, Calif., Nov. 17, 2014 /PRNewswire/ — The Macerich Company (NYSE: MAC) today announced closing the acquisition of its joint venture partner’s 49% stake in five super regional malls: Queens Center, WashingtonSquare, Los Cerritos Center, Stonewood Center and Lakewood Center from a wholly-owned subsidiary of the Ontario Teachers’ Pension Plan Board. Total consideration was $1.89 billion (USD), including the assumption of $673 millionof property-level debt. The balance was funded through the direct issuance to a wholly-owned subsidiary of the Ontario Teachers’ Pension Plan Board of $1.22 billion of Macerich common stock at a fixed price of $71 per share, representing a 10.9% common ownership stake in the Company. The real estate portfolio of Ontario Teachers’ is managed by its subsidiary, The Cadillac Fairview Corporation Limited.
“In a sector in which quality acquisition opportunities rarely present themselves, the opportunity to consolidate our ownership in these highly productive, market dominant centers through a stock for asset exchange represents a real opportunity to increase our overall portfolio quality and growth prospects,” said Macerich chairman and chief executive officer Art Coppola, speaking on the deal. “On a sales per-square-foot basis, Queens Center and Washington Square are currently our two most productive assets, both generating sales of over $1,000 per square foot while Los Cerritos Center, which is currently generating nearly $700 per square foot in sales and undergoing a $45 million expansion, represents the linchpin of our dominant South LA market position along with Stonewood and Lakewood.”
“It is especially gratifying to have the opportunity to continue our 16 year relationship with the Ontario Teachers’ Pension Plan Board and Cadillac Fairview at an enterprise level in place of asset partnerships. We also welcome John Sullivan, CEO of Cadillac Fairview, as a new member to the Macerich Board of Directors, where his urban mall and global experience will bring a fresh valuable perspective to our Board.”
“We are thrilled to be continuing our partnership with Macerich, and have the highest respect for Art and his team,” said John Sullivan. “It is exciting to be a part of the development and implementation of their vision for one of the highest-quality mall portfolios in the U.S.”
