CBL Completes Acquisition of 21 Malls
Page 1
January 31, 2001
Contact: John Foy
Vice Chairman and CFO
(423) 855-0001
CBL & ASSOCIATES PROPERTIES COMPLETES ACQUISITION OF 21 MALLS
CHATTANOOGA, Tenn. (Jan. 31, 2001) - CBL & Associates Properties, Inc.
(NYSE:CBL) today announced it completed the acquisition of The Richard E. Jacobs
Group's interests in 21 malls and two associated centers for total consideration
of approximately $1.301 billion, including the acquisition of minority interests
in certain properties. The purchase price is comprised of $124.8 million in cash
including closing costs of approximately $12 million, $771.3 million in
non-recourse mortgage debt, and the issuance of 12,556,425 special common units
of CBL's operating partnership with a value of $32.25 per unit. The cash portion
was funded from a new $212 million unsecured credit facility provided by a
consortium of banks led by Wells Fargo.
The acquired properties, which total approximately 19.2 million square
feet, include five malls in Wisconsin, three each in North Carolina, Kentucky
and South Carolina, two each in Michigan and Ohio, one each in Illinois,
Tennessee and Texas and associated centers in both Ohio and Wisconsin. The
Company acquired 100% interest in 16 of the malls and one of the associated
centers and partial interests, ranging from 50% to 80%, in five of the malls and
one of the associated centers.
CBL is now the largest owner of malls and shopping centers in the Southeast
and the third largest mall real estate investment trust in terms of GLA owned in
the United States, having posted extraordinary growth in size and earnings since
its formation as a privately owned company in 1978 with only one shopping center
and its subsequent initial public offering in 1993.
"This transaction clearly defines CBL as the leading mall owner in the
Southeast and accelerates our previous expansion in the Midwest," stated Charles
B. Lebovitz, chairman and chief executive officer. "With our knowledge of these
markets and our dominant position in them, we believe this transaction will add
significant value for the benefit of our shareholders. We are very excited about
the opportunity to enhance the franchise value of these malls through our
leasing and specialty leasing programs, aggressive marketing and property
management, and renovation and redevelopment where appropriate, all of which we
expect to result in stronger properties.
CBL Completes Acquisition of 21 Malls
Page 2
January 31, 2001
"Our entire organization has worked tirelessly over the last several months
to ensure that the integration of these properties will be as seamless as
possible from day one. These integration efforts, which include adding personnel
in several areas of the company, have positioned us to take advantage of the
many opportunities this acquisition creates. We have also enjoyed working with
the Jacobs organization and have appreciated their cooperation throughout this
transaction."
CBL & Associates Properties, Inc. is a real estate investment trust that
owns regional malls and community shopping centers, primarily in the Southeast
and select markets in the Northeast and Midwest. With a total of 51 enclosed
malls, the Company now has a portfolio of 158 properties in 26 states totaling
55.9 million square feet, including 2.1 million square feet of non-owned
shopping centers managed for third parties. The Company has under construction
five new projects totaling approximately 1.7 million square feet, including two
malls, one community center and two mall expansions. In addition to its
headquarters in Chattanooga, TN, CBL has a regional office in Boston (Waltham),
MA. The Company can be found on the Internet at www.cblproperties.com.
Information included herein contains "forward-looking statements" within the
meaning of the federal securities laws. Such statements are inherently subject
to risks and uncertainties, many of which cannot be predicted with accuracy and
some of which might not even be anticipated. Future events and actual events,
financial and otherwise, may differ materially from the events and results
discussed in the forward-looking statements. The reader is directed to the
Company's various filings with the Securities and Exchange Commission, including
without limitation the Company's Annual Report on Form 10-K and the
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" incorporated by reference therein, and the Company's current report
on Form 8-K being filed in connections with the transaction described herein,
for a discussion of such risks and uncertainties.
The shopping centers acquired are:
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Total Mall Store Percentage
Mall (Market) GLA GLA Anchors Acquired
- ------------- --- --- ------- --------
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CherryVale Mall (Rockford) 714,000 300,000 Bergner's, Marshall Field, Sears 100%
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Kentucky
Fayette Mall (Lexington) 1,096,000 298,000 Dillard's, JC Penney, Lazarus, Sears 100
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Jefferson Mall (Louisville) 936,000 275,000 Dillard's, JC Penney, Lazarus, Sears 100
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Kentucky Oaks (Paducah) 878,000 298,000 Dillard's(2), Elder-Beerman, 50(1)
JC Penney, Sears, ShopKo
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Michigan
Midland Mall (Midland) 514,000 196,000 Elder-Beerman, JC Penney, 100
Sears, Target
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Fashion Square Mall (Saginaw) 786,000 287,000 Hudson's, JC Penney, Sears 100
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North Carolina
Randolph Mall (Asheboro) 376,000 147,000 Belk, JC Penney, Sears 100
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Cary Towne Center (Cary) 953,000 294,000 Hudson Belk, Dillard's, Hecht's, 80
JC Penney, Sears
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Hanes Mall (Winston-Salem) 1,556,000 548,000 Belk, Dillard's, Hecht's, 100
JC Penney, Sears
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Ohio
Eastgate Mall (Cincinnati) 905,000 268,000 Dillard's, JC Penney, Kohl's, Sears 100
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Eastgate Crossing (Cincinnati) 194,000 Border's, Circuit City, Kids 'R Us, 100
Kroger
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Towne Mall (Franklin) 521,000 152,000 Dillard's, Elder-Beerman, Sears 100
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South Carolina
Citadel Mall (Charleston) 1,068,000 294,000 Belk, Dillard's, Parisian, Sears 100
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Columbia Mall (Columbia) 1,113,000 297,000 Dillard's, JC Penney, Rich's, Sears 79
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Northwoods Mall (North Charleston) 833,000 312,000 Belk, Dillard's, JC Penney, Sears 100
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Tennessee
Old Hickory Mall (Jackson) 555,000 159,000 Belk, Goldsmith's, JC Penney, Sears 100
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Texas
Parkdale Mall (Beaumont) 1,411,000 462,000 Dillard's (2), JC Penney, 100
Montgomery Ward, Sears
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Wisconsin
East Towne Mall (Madison) 895,000 295,000 Boston Store, JC Penney, Sears, 65
Younkers
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West Towne Mall (Madison) 1,021,000 260,000 Boston Store, JC Penney, Sears, 65
Younkers
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West Towne Crossing (Madison) 447,000 Barnes & Noble, Best Buy, Cub 65
Foods, Ganders Mountain, Kohl's,
Office Max, ShopKo
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Brookfield Square Mall (Milwaukee) 1,041,000 316,000 Boston Store, JC Penney, Sears 100
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Regency Mall (Racine) 918,000 68,000 Boston Store, JC Penney, Sears, 100
Younkers
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Wausau Center (Wausau) 429,000 156,000 JC Penney, Sears, Younkers 100
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(1) Managed by a third party