Home » Business » Business: Equity One Moves into Californian Shopping Centres

Business: Equity One Moves into Californian Shopping Centres

Equity One, Inc., the shopping centre giant, announced on Monday 24th May 2010, that it has entered into an agreement to acquire Capital and Counties USA Inc. through a joint venture with the parent company, Capital Shopping Centres Group PLC.

The transaction has been valued at around $600 million. Capital Shopping Centres will receive 4.1 million shares of Equity One common stock and 10.9 million joint venture units. Capital Shopping Centres may redeem its units in the joint venture for Equity One common stock on a one-for-one basis or cash, at the discretion of Equity One’s.

Equity One will assume approximately $330 million of mortgage debt, including its proportionate share of debt held by its joint ventures, with a weighted average interest rate of 5.7%.

The retail properties included in the deal are as follows:

Property Location GLA Occupancy at April 30th 2010 Major Tenants
Serramonte Shopping Center Daly City 849,061 80% Macy’s, Target, New York & Company
Plaza Escuela Walnut Creek 152,183 81% Cheesecake Factory, Container Store
The Willows Shopping Center Concord 255,969 90% Old Navy, Cost Plus, REI, UFC Gym
222 Sutter Street San Francisco 127,87 87% Loehmann’s
The Marketplace Shopping Center Davis 112,974 91% Safeway, CVS, Petco
Retail Subtotal 1,498,065 83%

The deal will also include several offices, medical buildings and apartments.

Capital Shopping Centres Group PLC is a Real Estate Investment Trust (REIT) listed on the London Stock Exchange and one of the UK’s largest listed property companies. At the end of 2009, it had £5 billion’s worth of properties including the MetroCentre and the Arndale Centre in Manchester. CEO David Fischel will join Equity One’s Board of Directors once the deal is concluded.

Turner Newton will continue as CEO of Capital and Counties USA Inc. Equity One intends to retain the majority of the in-place infrastructure at the company, including the operating, acquisition and asset management teams.

The transaction is expected to close late in the third quarter of 2010.

Serramonte Shopping Centre, Daly City, CA

About Business Desk

Business Desk
Editors and staff from the Business Desk at The Global Herald.

Check Also

disneyland-paris

Disneyland Paris to Raise €1 Billion to Secure Future

The Walt Disney Company (NYSE: DIS) has announced support for a recapitalization plan worth €1 …

Leave a Reply

Your email address will not be published. Required fields are marked *