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Tue, September 27, 2011
Mon, September 26, 2011

Equity One Announces the Strategic Sale of 36 Shopping Centers for $473 million


Published on 2011-09-26 13:11:57 - Market Wire
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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.

Contributing Sources