NEW YORK & CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
TIAA-CREF and CBL & Associates Properties, Inc. (NYSE: CBL), today
announced the closing of their $1.09 billion real estate joint venture
to invest in market dominant shopping malls.
TIAA-CREF has completed its investment in four of CBL’s market dominant
shopping malls: Oak
Park Mall in Kansas City, KS; West
County Center in St. Louis, MO; CoolSprings
Galleria in Nashville, TN; and Pearland
Town Center in Pearland, TX.
“With the ongoing disconnect in public versus private market valuations,
we believe this transaction provides us with the most advantageous
source of monetizing the equity value in our portfolio,” said Stephen
Lebovitz, CBL’s president & chief executive officer. “TIAA-CREF’s
investment strengthens our balance sheet and partners us with a
well-capitalized institution to pursue new opportunities.”
TIAA-CREF has $17 billion (6/30/11) of primarily high-quality properties
in the office, retail, industrial and multifamily sectors across the
U.S., Canada, and Western Europe.
“We believe dominant regional malls are an important part of a
well-diversified real estate portfolio, and this investment alongside
CBL allows us to expand our presence in this sector,” said Philip
McAndrews, managing director and head of global real estate transactions
and joint ventures, TIAA-CREF. “This investment in super regional malls
with CBL is part of our strategy to invest in assets that provide
durable income streams with enduring long term values.”
TIAA-CREF received a 50 percent pari passu interest in the three
enclosed malls, including Oak Park Mall, West County Center and
CoolSprings Galleria, and a 12 percent interest in Pearland Town Center.
In total, CBL reduced outstanding debt balances by approximately $486
million through TIAA-CREF’s assumption of approximately $267 million of
property-specific debt and cash proceeds of approximately $219 million.
CBL continues to manage and lease the properties.
Eastdil Secured acted as CBL’s exclusive financial advisor in arranging
this joint venture.
About TIAA-CREF
TIAA-CREF (www.tiaa-cref.org)
is a national financial services organization with $469 billion in
combined assets under management (as of 6/30/11) and is the leading
provider of retirement services in the academic, research, medical and
cultural fields.
TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal
Investors Services, Inc., members FINRA, distribute securities products.
About CBL & Associates Properties, Inc.
CBL is one of the largest and most active owners and developers of malls
and shopping centers in the United States. CBL owns, holds interests in
or manages 158 properties, including 85 regional malls/open-air centers.
The properties are located in 27 states and total 85.3 million square
feet including 3.6 million square feet of non-owned shopping centers
managed for third parties. Headquartered in Chattanooga, TN, CBL has
regional offices in Boston (Waltham), MA, Dallas (Irving), TX, and St.
Louis, MO. Additional information can be found at cblproperties.com.
Information included herein contains "forward-looking statements"
within the meaning of the federal securities laws.Such
statements are inherently subject to risks and uncertainties, many of
which cannot be predicted with accuracy and some of which might not even
be anticipated.Future events and actual events, financial and
otherwise, may differ materially from the events and results discussed
in the forward-looking statements.The reader is directed to the
CBL's various filings with the Securities and Exchange Commission,
including without limitation the CBL's Annual Report on Form 10-K and
the "Management's Discussion and Analysis of Financial Condition and
Results of Operations" incorporated by reference therein, for a
discussion of such risks and uncertainties.
TIAA-CREF
Abby Aylman Cohen, 212-916-4381
aacohen@tiaa-cref.org
or
CBL
& Associates Properties, Inc.
Katie Reinsmidt, 423-490-8301
katie_reinsmidt@cblproperties.com
Source: CBL & Associates Properties, Inc.