BLOOMFIELD HILLS —Taubman Centers has completed the sale of seven malls—including two in metro Detroit—to Starwood Capital Group, part of Taubman’s ongoing strategy to recycle capital, maximize its net operating income growth rate, and create net asset value for investors over time.
“These transactions are transformative for the company,” says Robert S. Taubman, chairman, president and chief executive officer. “The sale of these assets leaves our remaining portfolio significantly enhanced, with higher sales productivity and faster net operating income growth. It also allows management to focus on the company’s most strategic assets and development and redevelopment pipelines, where the greatest net asset value can be created.”
The following seven malls were sold:
- 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, Texas
- The Mall at Partridge Creek, Clinton Township
- Fairlane Town Center, Dearborn
Consideration for the properties totaled $1.4 billion, excluding transaction costs. After the retirement of $623 million of property-level debt and accrued interest and $44 million of transaction costs, net cash proceeds were $736 million. Taubman’s share of the net cash proceeds was $716 million.