September 30, 2015
Santa Monica-based mall owner Macerich Co. is forming two joint ventures, one with Heitman, of Chicago, and the other with GIC, a Singapore-based global investment firm. The two Macerich joint ventures represent $5.4 billion in retail properties, with cash proceeds going to the REIT totaling $2.3 billion.
Heitman will have 49-percent ownership of three retail properties, including Deptford [N.J.] Mall; Flatiron Crossing, in Broomfield, Colo.; and Twenty Ninth Street, in Boulder, Colo. GIC will control a 40-percent share of five asset. They are Arrowhead Towne Center, in Glendale, Ariz.; Lakewood (Calif.) Center; Los Cerritos (Calif.) Center; South Plains Mall, in Lubbock, Texas; and Washington Square, in Portland, Ore.
Deals are expected to close between this month and next year’s first quarter. Proceeds from the Macerich joint ventures will go toward a $1.2-billion share repurchase program, paying off debt, and a special shareholder dividend.