Taubman Sells Shares of Three Asian Shopping Centers
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US retail property specialist Taubman Centers is to sell a 50 per cent stake in three of its shopping centres in China and Korea to funds managed by private equity company Blackstone Group. The deal, worth US$480-million, is expected to be settled later this year and will net Taubman about $315 million according to financial news reports. The company will maintain a share of up to 25 per cent in each property.
Post settlement, Taubman will be contracted for the ongoing management of the centres.
The centres are South Korea’s Starfield Hanam, and China’s CityOn Xi’an and CityOn Zhengzhou.
Taubman manages a 26 regional, super-regional and outlet shopping centres in the US and Asia, and has another property under development. CEO Robert S Taubman said the sale was part of a strategy of recycling capital for growth.
Questions & Answers
Q.Which specific properties are included in this sale agreement?
Which specific properties are included in this sale agreement?
The sale involves three shopping centres: Starfield Hanam in South Korea, and two centres in China, CityOn Xi’an and CityOn Zhengzhou. These are all properties where Taubman is selling a stake.
Q.What is the total value of this deal and how much will Taubman receive?
What is the total value of this deal and how much will Taubman receive?
The entire deal is valued at US$480 million. Taubman expects to net approximately $315 million from this transaction, according to financial news reports mentioned in the article.
Q.Will Taubman entirely divest its involvement in these Asian shopping centres?
Will Taubman entirely divest its involvement in these Asian shopping centres?
No, Taubman will retain a share of up to 25 per cent in each property included in the sale. The company will also continue to manage the centres after the settlement.
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