CBL & Associates Properties Completes Acquisition of 21 Malls.Business Editors CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Jan. 31, 2001 CBL Cbl cobalamin. & Associates Properties, Inc. (NYSE NYSE See: New York Stock Exchange :CBL) today announced it completed the acquisition of The Richard E. Jacobs Group's interests in 21 malls and two associated centers for total consideration of approximately $1.301 billion, including the acquisition of minority interests in certain properties. The purchase price is comprised of $124.8 million in cash including 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, of approximately $12 million, $771.3 million in non-recourse mortgage debt, and the issuance of 12,556,425 special common units of CBL's operating partnership with a value of $32.25 per unit. The cash portion was funded from a new $212 million unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. credit facility provided by a consortium of banks led by Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. . The acquired properties, which total approximately 19.2 million square feet, include five malls in Wisconsin Wisconsin, state, United States Wisconsin (wĭskŏn`sən, –sĭn), upper midwestern state of the United States. It is bounded by Lake Superior and the Upper Peninsula of Michigan, from which it is divided by the Menominee , three each in North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. and South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , two each in Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). and Ohio, one each in Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. , Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. and Texas and associated centers in both Ohio and Wisconsin. The Company acquired 100% interest in 16 of the malls and one of the associated centers and partial interests, ranging from 50% to 80%, in five of the malls and one of the associated centers. CBL is now the largest owner of malls and shopping centers shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into in the Southeast and the third largest mall real estate investment trust in terms of GLA owned in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , having posted extraordinary growth in size and earnings since its formation as a privately owned company in 1978 with only one shopping center and its subsequent initial public offering in 1993. "This transaction clearly defines CBL as the leading mall owner in the Southeast and accelerates our previous expansion in the Midwest," stated Charles B. Lebovitz, chairman and chief executive officer. "With our knowledge of these markets and our dominant position in them, we believe this transaction will add significant value for the benefit of our shareholders. We are very excited about the opportunity to enhance the franchise value of these malls through our leasing and specialty leasing programs, aggressive marketing and property management, and renovation and redevelopment where appropriate, all of which we expect to result in stronger properties. "Our entire organization has worked tirelessly tire·less adj. Not yielding to fatigue; untiring or indefatigable. tire  less·ly adv. over the last
several months to ensure that the integration of these properties will
be as seamless as possible from day one. These integration efforts,
which include adding personnel in several areas of the company, have
positioned us to take advantage of the many opportunities this
acquisition creates. We have also enjoyed working with the Jacobs
organization and have appreciated their cooperation throughout this
transaction."CBL & Associates Properties, Inc. is a real estate investment trust that owns regional malls and community shopping centers, primarily in the Southeast and select markets in the Northeast and Midwest. With a total of 51 enclosed en·close also in·close tr.v. en·closed, en·clos·ing, en·clos·es 1. To surround on all sides; close in. 2. To fence in so as to prevent common use: enclosed the pasture. malls, the Company now has a portfolio of 158 properties in 26 states totaling 55.9 million square feet, including 2.1 million square feet of non-owned shopping centers managed for third parties. The Company has under construction five new projects totaling approximately 1.7 million square feet, including two malls, one community center and two mall expansions. In addition to its headquarters in Chattanooga, TN, CBL has a regional office in Boston (Waltham), MA. The Company can be found on the Internet at www.cblproperties.com. Information included herein contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 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, and the Company's current report on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. being filed in connection with the transaction described herein, for a discussion of such risks and uncertainties. The shopping centers acquired are:
Mall (Market) Total GLA Mall Store Percentage to
GLA be Acquired
Illinois
--------
CherryVale Mall (Rockford) 714,000 300,000 100%
Kentucky
--------
Fayette Mall (Lexington) 1,096,000 298,000 100
Jefferson Mall (Louisville) 936,000 275,000 100
Kentucky Oaks (Paducah) 878,000 298,000 50(1)
Michigan
--------
Midland Mall (Midland) 514,000 196,000 100
Fashion Square Mall (Saginaw) 786,000 287,000 100
North Carolina
--------------
Randolph Mall (Asheboro) 376,000 147,000 100
Cary Towne Center (Cary) 953,000 294,000 80
Hanes Mall (Winston-Salem) 1,556,000 548,000 100
Ohio
----
Eastgate Mall (Cincinnati) 905,000 268,000 100
Eastgate Crossing (Cincinnati) 194,000 100
Towne Mall (Franklin) 521,000 152,000 100
South Carolina
--------------
Citadel Mall (Charleston) 1,068,000 294,000 100
Columbia Mall (Columbia) 1,113,000 297,000 79
Northwoods Mall (North Charleston) 833,000 312,000 100
Tennessee
---------
Old Hickory Mall (Jackson) 555,000 159,000 100
Texas
-----
Parkdale Mall (Beaumont) 1,411,000 462,000 100
Wisconsin
---------
East Towne Mall (Madison) 895,000 295,000 65
West Towne Mall (Madison) 1,021,000 260,000 65
West Towne Crossing (Madison) 447,000 65
Brookfield Square Mall (Milwaukee) 1,041,000 316,000 100
Regency Mall (Racine) 918,000 268,000 100
Wausau Center (Wausau) 429,000 156,000 100
(1) Managed by a third party
Mall Anchors
Illinois
--------
CherryVale Mall Bergner's, Marshall Field, Sears
Kentucky
--------
Fayette Mall Dillard's, JC Penney, Lazarus, Sears
Jefferson Mall Dillard's, JC Penney, Lazarus, Sears
Kentucky Oaks(1) Dillard's(2), Elder-Beerman, JC Penney,
Sears, ShopKo
Michigan
--------
Midland Mall Elder-Beerman, JC Penney, Sears, Target
Fashion Square Mall Hudson's, JC Penney, Sears
North Carolina
--------------
Randolph Mall Belk, JC Penney, Sears
Cary Towne Center Hudson Belk, Dillard's, Hecht's, JC Penney,
Sears
Hanes Mall Belk, Dillard's, Hecht's, JC Penney, Sears
Ohio
----
Eastgate Mall Dillard's, JC Penney, Kohl's, Sears
Eastgate Crossing Border's, Circuit City, Kids 'R Us, Kroger
Towne Mall Dillard's, Elder-Beerman, Sears
South Carolina
--------------
Citadel Mall Belk, Dillard's, JC Penney, Parisian, Sears
Columbia Mall Dillard's, JC Penney, Rich's, Sears
Northwoods Mall Belk, Dillard's, JC Penney, Sears
Tennessee
---------
Old Hickory Mall Belk, Goldsmith's, JC Penney, Sears
Texas
-----
Parkdale Mall Dillard's(2), JC Penney, Montgomery Ward,
Sears
Wisconsin
---------
East Towne Mall Boston Store, JC Penney, Sears, Younkers
West Towne Mall Boston Store, JC Penney, Sears, Younkers
West Towne Crossing Barnes & Noble, Best Buy, Cub Foods,
Ganders Mountain, Kohl's, Office Max, ShopKo
Brookfield Square Mall Boston Store, JC Penney, Sears
Regency Mall Boston Store, JC Penney, Sears, Younkers
Wausau Center JC Penney, Sears, Younkers
(1) Managed by a third party
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