Real estate investment trust The Macerich Company is seeking to replace or refinance hundreds-of-millions of dollars worth of debt collateralized by five US malls tied to the $2.3bn selloff of minority interests in eight total malls.
The debt carries an original balance of nearly $800m, based on a review of records from data firm Real Capital Analytics and previous announcements from Macerich.
Macerich will place new debt on the South Plains Mall in Lubbock, Texas and Twenty Ninth Street center in Boulder, Colorado, which are backed, respectively, by a $77.7m securitized loan from RBS (RBSCF 2010-MB1) dating back to April 2010 and a $115m refinancing from March 2009.
The REIT will also refinance the debt on Los Cerritos Center in Cerritos, California, Arrowhead Towne Center in Glendale, Arizona and Washington Square in Portland, Oregon. The existing debt includes a $120m first mortgage; a $230m refinancing from Prudential in September 2011; and a $250m financing from December 2008, respectively.
As part of the $2.3bn deal, Singapore’s GIC purchased a 40% interest in five malls and global real estate investment manager Heitman a 49% interest in the remaining three, all of which are expected to close in phases starting in October 2015 and concluding in the Q1 2016.
Included in the total cash proceeds is $1.14bn in ‘excess financing’ from the sale to Singapore’s GIC and Heitman, according to Macerich.
In April Macerich rejected a final $16.8bn buyout bid from top competitor Simon Property Group, stating that the $95.50 per share offer undervalued the company and its growth prospects.