CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
CBL & Associates Properties, Inc. (NYSE:CBL) today announced that it has
closed on a sale-leaseback transaction for five Sears department stores
and two Sears Auto Centers located at CBL malls, providing CBL with
control of these locations for future redevelopment.
CBL has acquired the locations for a total consideration of $72.5
million. Sears will continue to operate the department stores under new
10-year leases. Under the terms of the leases, CBL will receive
aggregate initial base rent of approximately $5.075 million, with Sears
also responsible for paying common area maintenance charges, taxes,
insurance and utilities.
CBL will have the right to terminate each Sears lease at any time
(except November through January), with six months’ advance notice. In
addition to CBL’s termination right, after a lock-out period of four
years for the Sears store at Jefferson Mall, two years for the other
four Sears stores and one-year for the two Sears Auto Centers, Sears may
terminate each store lease upon six months’ notice. Upon termination by
either party, Sears has the option to relocate its operations at each
mall to a location of up to 15,000 square feet.
“We are pro-actively transforming our market-dominant shopping centers
to meet the changing preferences of consumers. This transaction provides
CBL with the opportunity to redevelop prime real estate and attract
exciting new uses at some of our best shopping centers,” said Stephen
Lebovitz, president & chief executive officer. “The leaseback of the
real estate by Sears will generate income to CBL and gives us control
over the timing of closures while we finalize our redevelopment plans at
each location.”
The five locations acquired include the Sears’ parcels at Cross Creek
Mall in Fayetteville, North Carolina; Brookfield Square in Brookfield,
Wisconsin; Hamilton Place Mall in Chattanooga, Tennessee; Eastgate Mall
in Cincinnati, Ohio; and Jefferson Mall in Louisville, Kentucky. The two
acquired Sears Auto Centers are located at Northgate Mall in
Chattanooga, Tennessee, and Volusia Mall in Daytona, Florida.
About CBL & Associates Properties, Inc.
Headquartered in Chattanooga, TN, 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 128 properties,
including 84 regional malls/open-air centers. The properties are located
in 29 states and total 79.1 million square feet including 7.0 million
square feet of non-owned shopping centers managed for third parties.
Additional information can be found at cblproperties.com.
Forward-Looking Statements
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
Company’s various filings with the Securities and Exchange Commission,
including without limitation the Company’s Annual Report on Form 10-K
and the “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” included therein, for a discussion of such risks
and uncertainties.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170130005370/en/
CBL & Associates Properties, Inc.
Katie Reinsmidt, 423-490-8301
Senior
Vice President - Investor Relations and Corporate Investments katie.reinsmidt@cblproperties.com
or
Media
Contact:
Stacey Keating, 423-490-8361
Director – Public
Relations
stacey.keating@cblproperties.com
Source: CBL & Associates Properties, Inc.