Glimcher Realty Trust, one of the country´s premier retail REITs, announced that on December 5, 2002, it completed the sale of nine community center properties for approximately $94.3 million to U.S.P.G. Portfolio One, LLC and U.S.P.G. Portfolio Two, LLC.
This represents the final closing on a sale of a portfolio of 22 assets. On August 29, 2002, an initial group of 13 properties were sold for approximately $106 million.
Approximately $91.6 million of the cash proceeds were used to repay an 8.46% fixed rate mortgage that was scheduled to mature on July 1, 2009. The balance of the funds after payment of closing related costs were used to reduce the outstanding borrowings on the Company´s line of credit.
The properties sold on December 5, 2002 include nine community centers encompassing approximately 2.1 million square feet of gross leasable area. The total sale included 20 community centers and 2 single tenant assets encompassing approximately 4.2 million square feet of gross leasable area. Attached is a listing of the properties.
'This sale completes another major step in the execution of our plan to focus the Company´s investments in regional mall assets,' said Michael P. Glimcher, President. 'The paydown of additional debt as a result of this transaction also provides an opportunity to further improve our ratio of debt to market capitalization which was 58.1% at September 30, 2002.'
During 2002 the Company has closed on the sale of 27 community centers and three single tenant assets for a total of $275.2 million. As of December 6, 2002, the Company retains ownership or has a joint venture interest in a total of 73 properties aggregating 25.7 million square feet of gross leasable area. The Company´s 23 regional malls represent 19.7 million square feet of GLA. Regional malls are approximately 77% of the total portfolio GLA and 86% of total portfolio annualized minimum rents.