CBL & Associates Properties Closes Second Phase of Joint Venture with Galileo America REIT.Business Editors CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Jan. 5, 2004 CBL Cbl cobalamin. & Associates Properties, Inc. (NYSE NYSE See: New York Stock Exchange :CBL) announced today that it has completed the second phase of its joint venture with Galileo America REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). , the U.S. affiliate of Australia-based Galileo America Shopping Trust (ASX ASX See: Australian Stock Exchange :GSA (1) (Global mobile Suppliers Association, Sawbridgeworth, U.K., www.gsacom.com) A membership organization of suppliers of GSM products and services. Its goal is to promote GSM as the worldwide mobile communications standard. See GSM Association and GSM. ). CBL sold to the joint venture six power and community centers for total consideration of approximately $92.4 million. CBL received approximately $62.7 million after closing costs Closing Costs The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, and retirement of debt. The joint venture assumed approximately $2.8 million of existing debt on one of the properties, and CBL retired $25.9 million in debt associated with one property. The six properties generated net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of approximately $4.2 million in 2003. One of the six properties, opened in October 2003, was in operation for the last three months of the year. Completed in October 2003, CBL's joint venture with Galileo includes a total of 51 centers. CBL has sold 47 centers to date and the third and final phase will be comprised of four properties to be contributed in January 2005. Pursuant to a long-term agreement, CBL is a 10% joint venture partner and will be the exclusive manager for all of Galileo's properties in the United States and will be entitled to management, leasing, acquisition, disposition and financing fees. Net cash proceeds to CBL from all three phases are expected to total approximately $387 million, and the transaction is expected to generate gains on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis totaling approximately $99 million. The Company expects that the taxable gain Taxable Gain The portion of a sale that is liable to taxation. Notes: When redistributing mutual fund shares that have increased in value, returns may be subject to taxation. See also: Capital gain, Income Tax from the transaction will be deferred as the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). are being reinvested. The Company also announced that during the fourth quarter of 2003 three community centers were sold and that it received payment in full on a mortgage note receivable held on one property. The properties sold during the quarter were East Towne Crossing in Knoxville, TN; Orange Plaza in Roanoke, VA; and Colleton Square in Walterboro, SC. The mortgage for which the Company received payment during the fourth quarter was on University Crossing in Pueblo, CO. The net proceeds from the sale of these properties were approximately $7.8 million. CBL & Associates Properties, Inc. owns or holds interests in 162 properties, including 60 enclosed regional malls. The properties are located in 26 states and total 62.9 million square feet including 2.0 million square feet of non-owned shopping centers managed for third parties. The Company has seven projects under construction totaling approximately 1.9 million square feet, including one mall - Coastal Grand - Myrtle Beach, SC, one associated center, two community centers and three expansions. In addition to its office in Chattanooga, TN, the Company has a regional office in Boston (Waltham), MA. Additional information about the Company can be found on its website at www.cblproperties.com. Galileo Shopping America Trust Galileo Shopping America Trust is a company that acquires shopping centres all around the United States. Galileo has recently expanded its company with a $1.3 billion deal. With the new plan its properties are worth over $2 billion.[1]. is a newly formed Australian property trust created to invest in a joint venture with CBL & Associates Properties, Inc., an owner and developer of shopping centers for over 25 years. CBL is listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the ticker, "CBL." The Trust will invest in power and community shopping centers in North America and its portfolio will initially include 51 power and community shopping centers totaling 6.6 million square feet in 16 states. 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 Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" incorporated by reference therein, for a discussion of such risks and uncertainties.
Phase II Properties GLA
Owned
Description Total by Anchor Leasable
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Longview Crossing - Hickory, NC 40,598 0 40,598
Springs Crossing - Hickory, NC 42,920 0 42,920
Stone East Plaza - Kingsport, TN 45,259 0 45,259
Valley Crossing - Hickory, NC 186,077 0 186,077
Waterford Commons - Waterford, CT 353,086 110,789 242,297
Willow Springs Plaza - Nashua, NH 224,753 94,000 130,753
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Subtotal - Phase II properties 892,693 204,789 687,904
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