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TAUBMAN COMPLETES WOODFIELD FINANCING Proceeds to Retire Mortgage and Fund Expansion

 BLOOMFIELD HILLS, Mich., Oct. 14 /PRNewswire/ -- Taubman Centers, Inc., (NYSE: TCO) today announced that a secured financing of $172 million has been completed on Woodfield shopping center in Schaumburg, Ill. (suburban Chicago). The 5-year facility, placed by J.P. Morgan, has received a AAA rating from both Standard and Poor's and Duff and Phelps.
 Taubman Centers, Inc., a real estate investment trust, is managing general partner of The Taubman Realty Group Limited Partnership (TRG), which owns, develops, acquires and operates regional shopping centers nationally.
 Woodfield Associates, a 50/50 partnership between TRG and the California Public Employees Retirement System (CALPERS), owns the shopping center and was the recipient of the financing. A major expansion now under way at the 1.9 million square foot center will add a new Nordstrom department store and 188,000 square feet of mall shops by Fall 1995.
 Approximately $93.5 million of the $172 million financing will be used to fund costs-to-date of the Woodfield expansion and retire Woodfield's existing $74.3 million mortgage. The rate on this portion of the proceeds has been swapped to maturity at a rate of 5.4 percent.
 The balance of the funds (net of costs) has been escrowed for release to pay expansion costs through completion. The rate on this portion of the proceeds will float at a rate of 50 basis points over LIBOR, but is capped for the life of the loan at a maximum rate of 6.5 percent.
 Commenting on the transaction, Taubman Centers Executive Vice President and Chief Financial Officer Bernard Winograd said, "We believe this is the lowest spread over LIBOR for a real estate financing and the largest financing of a single real estate asset ever rated -- a testimony to the quality and financial strength of this asset.
 "This financing represents substantial progress toward the recasting of TRG's debts. Since the end of the second quarter, TRG has now fixed interest rates, changed the maturity, or replaced outright approximately $350 million of TRG's beneficial interest in its debts and those of its joint ventures."
 -0- 10/14/93
 /CONTACT: Christopher J. Tennyson, 313-258-7519/
 (TCO)


CO: Taubman Centers, Inc. ST: Michigan IN: SU:

DH -- NY022 -- 2085 10/14/93 09:45 EDT
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Publication:PR Newswire
Date:Oct 14, 1993
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