CBL & Associates Properties, Inc. (NYSE: CBL) announced that it has closed on the sale of three malls and three related associated centers in a portfolio transaction for a gross sales price of $176 million in cash.
The properties included in the portfolio are Georgia Square Mall and Georgia Square Plaza in Athens, Ga.; Panama City Mall and The Shoppes at Panama City in Panama City, Fla.; and Rivergate Mall and Village at Rivergate in Nashville.
The properties were purchased by an offshore investor with an Atlanta-based partner, Hendon Properties, who will also lease and manage the malls.
“We are pleased to complete the disposition of these assets, generating substantial equity and demonstrating our continued ability to effectively execute our capital plan,” said Stephen Lebovitz, president & chief executive officer of CBL. “When combined with the $209 million in ATM proceeds generated through mid-year as well as $44 million from the sale of office buildings completed earlier this year, we have raised more than $425 million in equity year-to-date. This deliberate approach has allowed us to significantly reduce debt while minimizing dilution and strengthening our core portfolio.”
Net proceeds from the disposition were used to reduce outstanding balances on the company’s unsecured lines of credit. The company anticipates a net impact of approximately $0.02 per share to 2013 funds from operations from the sale of the properties.
Margaret Caldwell and Kris Cooper of Jones Lang LaSalle represented CBL in the transaction.