Simon Property Group, Inc. reported today that the acquisition of assets from Rodamco North America, N.V. (RNA) by Simon, The Rouse Company (Rouse) and Westfield America Trust (Westfield) was completed on May 3, 2002.
The acquired portfolio consists primarily of interests in 13 high-quality, highly-productive regional malls in the United States, as well as ownership interests in other real estate assets. (Note: A detailed listing of assets acquired by Simon follows this release).
SimonÂ's share of the RNA purchase price was approximately $1.59 billion, including the assumption of $579 million of property-level debt and preferred stock. Simon also arranged a $600 million, 12-month acquisition credit facility which bears interest at LIBOR plus 65 basis points with seven of its lead lenders to fund a portion of the transaction.
Prior to the completion of this acquisition, Simon owned four of the portfolio assets in joint ventures with RNA. At the closing of the transaction, Teachers Insurance and Annuity Association (TIAA) acquired a 50% interest in three of the assets: The Florida Mall in Orlando, Florida; Miami International Mall in Miami, Florida; and West Town Mall in Knoxville, Tennessee; for $198.2 million plus the assumption of its pro rata share of mortgage debt on the assets.
Simon, Rouse and Westfield also jointly acquired several non-retail assets, generally considered to be non-core assets and intended for sale. Since the January 13, 2002 announcement of this acquisition, significant progress has been made on these dispositions, including the sale of the 745 5th Avenue office building in New York, which also closed on May 3rd.
(source: Simon Property)
