GIC, Macerich to invest in five retail properties
In this article (5)
GIC has entered into a joint venture with United States-listed real estate firm Macerich to invest in a 40 per cent interest in five retail properties in the world’s largest economy, the Singapore sovereign fund said yesterday.
When contacted by Today, GIC declined to disclose how much it would pay for the stakes. Macerich had said in a separate announcement that it agreed to sell minority stakes in eight US malls for a total of US$2.3 billion (S$3.3 billion) to GIC and US property investor Heitman, a deal that will allow the landlord to pay a special dividend, buy back shares and cut debt.
GIC will own stakes in: Washington Square in Portland, Oregon; Los Cerritos Centre in Cerritos, California; Arrowhead Towne Centre in Glendale, Arizona; Lakewood Centre in Lakewood, California; and South Plains Mall in Lubbock, Texas.
The transactions are expected to close in phases starting this month and concluding in the first quarter of next year, GIC said. Mr Lee Kok Sun, regional head for Americas, GIC Real Estate, said: “We expect these high-quality assets to continue generating steady income streams and are confident of their growth … As a long-term value investor, we look forward to partnering with Macerich … as they share our core investment belief of being long-term.”
Questions & Answers
Q.What is the total value of the minority stakes Macerich agreed to sell in its US malls?
What is the total value of the minority stakes Macerich agreed to sell in its US malls?
Macerich agreed to sell minority stakes in eight US malls for a total of US$2.3 billion, which equates to S$3.3 billion. This deal involves both GIC and US property investor Heitman.
Q.Which retail properties will GIC acquire a stake in through this joint venture?
Which retail properties will GIC acquire a stake in through this joint venture?
GIC will acquire stakes in five retail properties: Washington Square, Los Cerritos Centre, Arrowhead Towne Centre, Lakewood Centre, and South Plains Mall. These locations span Oregon, California, Arizona, and Texas.
Q.What are Macerich's plans for the proceeds from selling minority stakes in its malls?
What are Macerich's plans for the proceeds from selling minority stakes in its malls?
Macerich plans to use the proceeds from selling minority stakes to pay a special dividend to shareholders. The company also intends to buy back shares and reduce its existing debt obligations.
Q.When are these transactions expected to be completed?
When are these transactions expected to be completed?
The transactions are scheduled to close in phases, with the initial closures starting this month. GIC expects all transactions related to the joint venture to be concluded by the first quarter of next year.
Reader pulse
Is GIC's US retail investment a smart move?
24,018 votes so far