CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
CBL & Associates Properties, Inc. (NYSE:CBL) announced plans for future
redevelopment of four Macy’s anchor locations in the CBL portfolio that
are expected to close in 2017.
As part of its announced store closures, today Macy’s announced its
intention to close four locations in the CBL portfolio at Jefferson Mall
in Louisville, KY; Layton Hills Mall in Layton, UT; Parkdale Mall in
Beaumont, TX and Eastland Mall in Bloomington, IL. Macy’s has announced
an anticipated closing date of March 31st for the stores.
At Layton Hills Mall, CBL is finalizing negotiations with a new anchor
store to replace Macy’s. While discussions are ongoing, CBL anticipates
the new store to open before year-end. The remaining three stores,
aggregating approximately 444,000 square feet, are currently owned by
Macy’s and CBL has entered into an agreement to purchase the locations
from Macy’s for a total consideration of $5 million. Subject to normal
closing conditions, the transaction is expected to close during the
first quarter. Redevelopment plans for these three locations will be
announced as replacement users are finalized.
“The redevelopment of former department stores provides CBL with
significant value-creation opportunities,” said Stephen Lebovitz,
president & CEO. “As we discussed on our last earnings call, the closure
of these locations was fully anticipated. Recapturing these stores will
allow us to take space that is underperforming and convert it into new
retail, dining and entertainment users – driving increased traffic,
sales and growth to the entire property as well as generating strong
returns to CBL.
“In anticipation of these closures, we have proactively engaged in
discussions with a number of prospective users. Our next steps will be
to finalize negotiations and redevelopment plans for the remaining three
malls. Once leases are signed, we will share specific names joining each
mall, as well as construction and opening timelines. The list of users
interested in these specific locations includes sporting goods, fitness
centers, off price boxes, restaurants, theaters and entertainment
concepts, all of which will enhance the performance of the malls
overall.”
Over the past three years, CBL has opened more than 80 anchor and junior
anchor locations in its portfolio. Based on CBL’s extensive track record
of successful anchor redevelopment, similar projects have generally
required 12-24 months to complete and an investment of $5-10 million,
generating initial unleveraged returns in the range of 7-10%. More
specific cost and return information regarding each location will be
announced as plans are finalized.
In addition to the four stores mentioned above, Macy’s has announced
that it will close its store at River Ridge Mall in Lynchburg, VA, in
which CBL holds a minority interest. The acquisition and redevelopment
of this store will be handled solely by the majority owner of the mall.
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 136 properties, including 84 regional
malls/open-air centers. The properties are located in 31 states and
total 79.4 million square feet including 7.1 million square feet of
non-owned shopping centers managed for third parties.
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/20170104006437/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.