Post by Busgaljan on Apr 3, 2004 16:43:06 GMT -5
Mills selling half of Opry Mills mall
By M.B. Owens, bowens@nashvillecitypaper.com
March 29, 2004
Arlington-based Mills Corp. has agreed to convey approximately 50
percent of its interest in Opry Mills to a German affiliate of Kan Am Grund
for $158.1 million.
The transaction for the 1.2 million square feet shopping mall is to be
broken into $68.8 million to be paid to Mills plus an assumption of $89.3
million in debt by Kapitalanlagegesellschaft mbh.
Under terms of the agreement, both parties will receive an
unguaranteed 9 percent preference on equity. Mills' equity interest and cash
flows in Opry Mills will be increased disproportionately after payment of
the preference. This structure is expected to provide Mills with a higher
first-year return on its equity.
"This is the second joint venture we have closed with Kan Am Grund in
the last three months, demonstrating the benefits of the relationship we
have developed with Kan Am Grund," said Laurence C. Siegal, chairman and
chief executive of Mills.
Mills is a self-managed real estate investment trust that develops,
owns, leases and manages 27 retail and entertainment properties totaling
about 34 million square feet worldwide. It has six other projects under
construction.
Kan Am Grund manages two opened-ended real estate funds. Theses are
the "Euro Fund" and the "Dollar Fund", the latter of which is the investor
in Opry Mills.
Opry Mills, which opened in May 2000, was initially partly owned by
Nashville-based Gaylord Entertainment Co. In July 2002 Gaylord sold all of
its one-third interest to Mills for $31 million in cash and the transfer of
$56 million in debt.
By M.B. Owens, bowens@nashvillecitypaper.com
March 29, 2004
Arlington-based Mills Corp. has agreed to convey approximately 50
percent of its interest in Opry Mills to a German affiliate of Kan Am Grund
for $158.1 million.
The transaction for the 1.2 million square feet shopping mall is to be
broken into $68.8 million to be paid to Mills plus an assumption of $89.3
million in debt by Kapitalanlagegesellschaft mbh.
Under terms of the agreement, both parties will receive an
unguaranteed 9 percent preference on equity. Mills' equity interest and cash
flows in Opry Mills will be increased disproportionately after payment of
the preference. This structure is expected to provide Mills with a higher
first-year return on its equity.
"This is the second joint venture we have closed with Kan Am Grund in
the last three months, demonstrating the benefits of the relationship we
have developed with Kan Am Grund," said Laurence C. Siegal, chairman and
chief executive of Mills.
Mills is a self-managed real estate investment trust that develops,
owns, leases and manages 27 retail and entertainment properties totaling
about 34 million square feet worldwide. It has six other projects under
construction.
Kan Am Grund manages two opened-ended real estate funds. Theses are
the "Euro Fund" and the "Dollar Fund", the latter of which is the investor
in Opry Mills.
Opry Mills, which opened in May 2000, was initially partly owned by
Nashville-based Gaylord Entertainment Co. In July 2002 Gaylord sold all of
its one-third interest to Mills for $31 million in cash and the transfer of
$56 million in debt.