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Schroder RE acquires two regional malls.

Schroder Real Estate Associates has acquired the remaining equity interest in two regional shopping malls in the northwest on behalf of Schroder Real Estate Fund A, which Schroder advise6 and manages on behalf of pension fund investors. As joint venture partners with the Price Development Company of Salt Lake City, Schroder had held mortgages on both centers. Schroder will also assume management responsibility, which will be handled by Schroder Center Management, Inc., its subsidiary firm which manages over 6,500,000 square feet of shopping centers throughout the country owned by Schroder Real Estate Associates.

Rogue Valley, in Medford, Oregon, was first acquired in December 1988. The twolevel 550,000-square-foot enclosed mall on 51 acres is located at the entrance to I-S, which connects San Francisco and Portland. The term "Regional mall" has special significance in a region that extends 80 miles into southwest Oregon and northwest California and serves a 350,000-person market.

The mall, which has three anchor tenants: J.C. Penney, Meier & Frank, and Mervyns, exerts a major economic force in the area, and expects to contribute even more with the completion of the 88,000-square-foot Montgomery Ward store being built. The store will feature a new Electronic Avenue, as part of its 9,000-square-foot TBA (Tire, Battery, Accessory) store. Schroder's aggressive leasing policy has increased tenancy and improved the tenant mix.

Magic Valley, in Twin Falls Idaho, was acquired in February of 1989. The 427,000-square-foot enclosed center was anchored by Shopko, J.C. Penney, and The Bon. Since the acquisition, a 68,000-square-foot Sears was developed and an aggressive leasing program has improved the tenant mix. A 21,000-square-foot Lamont junior department store is now being added. Located on Highway 93 overlooking the Snake River Canyon, Magic

Valley Mall has a trade area extending north 85 miles to Sun Valley and east and west at least 50 miles toward Pocatello and Boise.

Mark Peskin, Schroder Managing Director, who arranged the financing package, notes that "Regional shopping malls are one of the strongest investment vehicles at any time. Exercising our options to acquire full equity, and assuming management of these strong, growing malls puts us in position to grow with improvements in the economy and to achieve favorable returns for our long-term investors."
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Title Annotation:Schroder Real Estate Associates
Publication:Real Estate Weekly
Date:Feb 19, 1992
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