Former Christiana Mall owner PREIT has completed the sale of four additional malls.
In November 2012, the company announced its plan to reshape its portfolio by disposing of non-core properties in order to reduce debt, improve portfolio quality and drive operating results.
The company has sold of 13 lower-productivity malls as well as several power centers and land parcels, and has generated approximately $600 million in gross proceeds.
The company and its predecessor developed and owned Christiana Mall and sold a half interest to Rouse in 2003. The mall ended up under the ownership of General Growth Properites, which launched an expansion that included outlying stores and a theater.
PREIT owned retail sites around the mall, but later sold those properties. It no longer has holdings in Delaware, but is developing a shopping center site in nearby Landenberg, PA.
Properties sold were:
- Lycoming Mall being sold for $26.35 million. Lycoming Mall in Pennsdale, Pa., is anchored by JC Penney, Sears, Bon-Ton and Macy’s.
- A three mall package being sold for $66 million, inclusive of $17 million in seller financing. PREIT may also be entitled to $3.5 million of additional consideration for these malls if certain conditions are met in future years. The properties in this transaction are:
- Gadsden Mall in Gadsden, Ala., which is anchored by Belk, JC Penney and Sears.
- New River Valley Mall in Christiansburg, Va., which is anchored by Belk, Dick’s Sporting Goods, JC Penney and Kohl’s.
- Wiregrass Commons Mall in Dothan, Ala., which is anchored by Belk, Burlington Coat Factory, Dillard’s and JC Penney.
The $600 million in gross proceeds has allowed the Company to reduce its overall indebtedness and redevelopment.
The company has also added one new mall to its portfolio, Springfield Town Center in Springfield, VA.
