Equity One Announces the Strategic Sale of 36 Shopping Centers for $473 million
NORTH MIAMI BEACH, Fla.--([ BUSINESS WIRE ])--Equity One, Inc. (NYSE:EQY), an owner, developer, and operator of shopping centers, announced that it has entered into an agreement to sell 36 shopping centers comprising approximately 3.9 million square feet for $473.1 million to Blackstone Real Estate Partners VII. These assets were encumbered by mortgage loans having an aggregate principal balance of approximately $177.4 million as of June 30, 2011.
"We are very pleased to enter into this transaction with Blackstone"
The shopping centers are predominately located in the Atlanta, Tampa and Orlando markets, with additional properties located in North Carolina, South Carolina, Alabama, Tennessee and Maryland. The portfolio generated net operating income of approximately $35.4 million for the twelve-month period ended June 30, 2011 and was 91% occupied as of June 30, 2011. A complete listing of the disposition assets is provided in Exhibit 1 to this press release.
Equity One intends to use the proceeds from the sale to retire debt, fund its redevelopment pipeline, for future acquisitions and other corporate purposes.
"We are very pleased to enter into this transaction with Blackstone," said Jeff Olson, Chief Executive Officer. "Together with our $600 million purchase of Capital & Counties and other recent acquisitions, this sale significantly advances our strategic plan to concentrate our portfolio in the urban retail markets of New York, Miami, Boston, San Francisco and Los Angeles."
Closing of the transaction is subject to customary conditions and is expected to occur in the fourth quarter of 2011.
Equity One estimates that as a result of entering into the transaction it will recognize a net impairment loss of approximately $32.0 to $36.0 million in the third quarter of 2011, which includes approximately $17.0 million related to unamortized debt discount costs on mortgages that are to be assumed by the buyer. Once there is more certainty on the exact closing date, Equity One will update its 2011 earnings guidance. The company's previous guidance specifically excluded impairment related charges and transaction costs and did not include the other effects of this sale of income producing properties.
Lazard Freres & Co. LLC acted as Equity One's financial advisor. Eastdil Secured acted as Blackstone's financial advisor.
ABOUT EQUITY ONE, INC.
As of June 30, 2011, Equity One owned or had interests in 219 properties comprising approximately 24 million square feet and consisting of 192 shopping centers, 10 projects under development or redevelopment, 12 non-retail properties, and 5 parcels of land.
FORWARD LOOKING STATEMENTS
Certain matters discussed by Equity One in this press release constitute forward-looking statements within the meaning of the federal securities laws. Although Equity One believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that these expectations will be achieved. Factors that could cause actual results to differ materially from current expectations include changes in macro-economic conditions and the demand for retail space in the states in which Equity One owns properties; the continuing financial success of Equity Onea™s current and prospective tenants; continuing supply constraints in its geographic markets; the availability of properties for acquisition; the success of its efforts to lease up vacant space; the effects of natural and other disasters; the ability of Equity One to successfully integrate the operations and systems of acquired companies and properties; the ability to consummate the foregoing sale transaction and the timing of such consummation; and other risks, which are described in Equity Onea™s filings with the Securities and Exchange Commission.
Exhibit 1 | |||||||||||
Disposition Properties | |||||||||||
Property | City | State | GLA(sf) | Anchor Tenant | |||||||
The Shops at Lake Tuscaloosa | Tuscaloosa | AL | 70,242 | Publix | |||||||
Winchester Plaza | Huntsville | AL | 75,700 | Publix | |||||||
Bay Point Plaza | St. Petersburg | FL | 103,986 | Publix | |||||||
Carrollwood Center | Tampa | FL | 93,673 | Publix | |||||||
Chelsea Place | New Port Richey | FL | 81,144 | Publix | |||||||
Conway Crossing | Orlando | FL | 76,321 | Publix | |||||||
Dolphin Village | St. Pete Beach | FL | 136,224 | Publix | |||||||
Eustis Village | Eustis | FL | 156,927 | Publix | |||||||
Hunter's Creek | Orlando | FL | 73,204 | Office Depot/Lifestyle Family Fitness | |||||||
Lake St. Charles | Riverview | FL | 57,015 | Sweetbay | |||||||
Marco Town Center | Marco Island | FL | 109,830 | Publix | |||||||
Midpoint Center | Cape Coral | FL | 75,386 | Publix / Target(a) | |||||||
Ross Plaza | Tampa | FL | 90,826 | Ross Dress For Less | |||||||
Sunrise Town Center | Sunrise | FL | 128,124 | LA Fitness/Office Depot/Wal-Mart(a) | |||||||
Venice Plaza | Venice | FL | 132,345 | Sweetbay | |||||||
Venice Shopping Center | Venice | FL | 109,801 | Publix | |||||||
Dublin Village | Dublin | GA | 98,540 | Kroger | |||||||
FreehomeVillage | Canton | GA | 74,340 | Publix | |||||||
Golden Park | Buford | GA | 68,738 | Publix | |||||||
Governors Town Square | Acworth | GA | 68,658 | Publix | |||||||
Grayson Village | Loganville | GA | 83,155 | Publix | |||||||
Keith Bridge Commons | Cumming | GA | 94,886 | Kroger | |||||||
Loganville Town Center | Loganville | GA | 77,661 | Publix | |||||||
Salem Road Station | Covington | GA | 67,270 | Publix | |||||||
Shops at Huntcrest | Lawrenceville | GA | 97,040 | Publix | |||||||
The Vineyards at Chateau Elan | Braselton | GA | 79,047 | Publix | |||||||
Wilmington Island | Wilmington Island | GA | 87,818 | Kroger | |||||||
South Plaza | California | MD | 92,335 | Ross Dress For Less/Old Navy/Best Buy/Petco | |||||||
Carolina Pavilion | Charlotte | NC | 731,678 | Ross Dress For Less/ hhgregg/Kohl's/AMC Theatres/Nordstrom Rack/DSW/ Bed Bath & Beyond/buybuy BABY/Old Navy/ Target(a) | |||||||
Parkwest Crossing | Durham | NC | 85,602 | Food Lion | |||||||
Salisbury Marketplace | Salisbury | NC | 79,732 | Food Lion | |||||||
Whitaker Square | Winston-Salem | NC | 82,760 | Harris Teeter | |||||||
Belfair Towne Village | Bluffton | SC | 125,389 | Kroger | |||||||
Belfair II | Bluffton | SC | 41,250 | Steinmart | |||||||
Milestone Plaza | Greenville | SC | 89,721 | BiLo | |||||||
Greensboro Village Shopping Center | Gallatin | TN | 70,203 | Publix |
Total 36 shopping centers 3,866,571
(a) Retailer is a shadow anchor and not part of the owned property.