AMC offloads factory as part of strategy shift.
The sale of Gettysburg Village, which features over 70 unique stores and restaurants, a hotel and a cinema, is expected to close in late winter 2007. The sale price has not been disclosed.
Representing AMC Delancey in this deal was Richard A. Frolik, executive vice president of CB Richard Ellis.
The sale of Gettysburg Village is another step in AMC Delancey's corporate strategy shift from owner/ operator to provider of equity capital and resources to strategic operating partners. The company has been systematically selling properties they managed internally, and will continue to do so as appropriate opportunities arise.
"This was an opportune time to sell Gettysburg Village, as managing this type of asset is no longer core to our operating strategy. Conversely, it fits perfectly with Horizon's core strategy and is precisely the type of opportunity they were seeking," stated Kenneth P. Balin, president and CEO of AMC Delancey Group. "We will continue to review asset sales opportunities as they arise, while simultaneously maintaining our ongoing strategy of seeking strategic operating partners with whom to invest."
Gary Skoien, president and CEO of Horizon Group Properties, added, "Horizon is very excited about the opportunity that Gettysburg presents to our company. We believe that the combination of a growing population base and strong tourist destination will enable us to expand the center significantly, while also increasing sales and traffic."
The center's history is nearly as rich as that of the historic town that it calls home. The late Greg Boyle, founder and president of The Boyle Group, conceived the project in the mid 1990s, and in 1998 partnered with the then-Delancey Investment Group, Inc. to develop the project.
In the late 1990s, Mt. Joy Township, the Pennsylvania Historical Society and the town of Gettysburg all shared some skepticism and concern over what would be developed adjacent to this historic battlefield, named one of the "Top 10 Epic Sites" by Conde Nast Traveler. Planning and negotiations around development conditions spanned a period of nearly five years. The extensive planning, affectionately referred to as the "Second Civil War" amongst Delancey and Boyle Group staff, culminated with the grand opening of the center in October of 2000. Since that time, the center has been fully leased with retail and dining establishments.
Last year, the first parts of a planned Phase II development were completed with the opening of a state-of-the-art 10-screen theater. Horizon plans to accelerate the Phase II plan that AMC Delancey had begun, with an eventual build-out that will almost double the number of national retailers at the Village.
Andrew Kleeman, vice president of asset management for AMC Delancey Group, stated, "The timing is perfect to pull the trigger on the Village's Phase II expansion. With a new federal visitors center under construction, and several new full service hotels, Gettysburg is rapidly evolving from a day trip destination to a world-class historic vacation location. While we at AMC Delancey were on the verge of commencing with Phase II, Horizon brings many years of national outlet center experience to the table. I'm certain their special expertise in this asset sub-class will add vitality and expedience to the terrific expansion we had envisioned."
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|Title Annotation:||NATIONAL ROUND-UP|
|Comment:||AMC offloads factory as part of strategy shift.(NATIONAL ROUND-UP)|
|Publication:||Real Estate Weekly|
|Date:||Mar 14, 2007|
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