CORRECTING and REPLACING Ramco-Gershenson Announces Agreement to Acquire Its
Partner’s Interest in 12 Market Dominant Shopping Centers
CORRECTION... by Ramco-Gershenson Properties Trust
FARMINGTON HILLS, Mich. -- March 12, 2013
Second graph, second sentence of release dated March 11, 2013, should read: At
the end of 2012, leased occupancy for the 2.2 million square foot portfolio
was 93.0% and annualized base rent was $14.51 per square foot. (sted. At the
end of 2012, leased occupancy for the 2.2 million square foot portfolio was
91.3% and annualized base rent was $14.07 per square foot.)
The corrected release reads:
RAMCO-GERSHENSON ANNOUNCES AGREEMENT TO ACQUIRE ITS PARTNER’S INTEREST IN 12
MARKET DOMINANT SHOPPING CENTERS
Ramco-Gershenson Properties Trust (NYSE:RPT) (the “Company”) today announced
that it has entered into an agreement to acquire its partner’s 70% ownership
interest in 12 of 15 shopping centers owned by Ramco/Lion Venture LP for
approximately $151.9 million in cash and the assumption of its partner’s
pro-rata share of debt of approximately $104.9 million. The Company currently
owns a 30% interest in the properties.
The 12 shopping centers that the Company is acquiring are anchored by grocery
and/or value-oriented retailers and are located in Florida and Michigan. At
the end of 2012, leased occupancy for the 2.2 million square foot portfolio
was 93.0% and annualized base rent was $14.51 per square foot. The shopping
centers serve strong trade areas with an average 5-mile population of 153,000
and an average 5-mile household income of $81,000. The top three tenants,
based on annualized base rents for the centers, are Bed, Bath & Beyond, TJX
Companies, and LA Fitness. In 2012, the 12 shopping centers generated net
operating income of approximately $27.0 million, which equates to a
capitalization rate of 7.4% on the aggregate asset value of $366.8 million.
“The purchase of our partner’s interest in these 12 assets reflects the
Company’s focus on growing its portfolio of large, market dominant shopping
centers in strong metropolitan trade areas,” said Dennis Gershenson, President
and Chief Executive Officer of Ramco-Gershenson Properties Trust. “The
completion of this transaction will increase our assets by more than 25% while
achieving an attractive risk-adjusted return. Our familiarity with the
properties, the strength of their tenancies and demographic profiles, and the
potential for future upside were all considerations in entering into this
Upon completion of the transaction, the Company anticipates that its centers
in Michigan and Florida will account for 41% and 27%, respectively, of its
pro-rata share of annualized base rent. Currently, the Company’s pro-rata
share of annualized base rents for Michigan and Florida are 40% and 22%,
respectively. The Company plans to continue to sell non-core shopping centers,
including a number of Michigan properties, as it executes on its strategy of
upgrading its shopping center portfolio with a concentration on metropolitan
The Florida shopping centers, which represent 58% of the acquisition, are:
*Mission Bay Plaza (Boca Raton), 263,721 square feet, anchored by The
Fresh Market, Golfsmith, LA Fitness, OfficeMax, and Toys “R” Us.
*Marketplace of Delray (Delray Beach), 238,901 square feet, anchored by
Ross Dress for Less, Winn-Dixie, and Office Depot.
*Cypress Point (Clearwater), 167,280 square feet, anchored by The Fresh
Market, and Burlington Coat Factory.
*West Broward (Plantation), 152,973 square feet, anchored by DD’s Discounts
(a division of Ross Dress for Less) and Save-A-Lot.
*Village Plaza (Lakeland), 146,755 square feet, anchored by Big Lots.
*Vista Plaza (Jensen Beach), 109,761 square feet, anchored by Bed, Bath &
Beyond, Michaels, and Total Wine & More.
*Treasure Coast Commons (Jensen Beach), 92,979 square feet, anchored by
Barnes & Noble, OfficeMax, and Sports Authority.
*Cocoa Commons (Cocoa), 90,116 square feet, anchored by Publix.
Within the past two years, a number of the Florida properties have undergone
anchor retenantings, adding Ross Dress for Less, The Fresh Market, Golfsmith,
LA Fitness, and Total Wine & More to the various centers.
The Michigan shopping centers, which represent 42% of the acquisition, are:
*Hunter’s Square (Farmington Hills), 354,323 square feet, anchored by Bed,
Bath & Beyond, Buy Buy Baby, Loehmann’s, Michaels, Marshalls, and TJ Maxx.
*Winchester Center (Rochester Hills), 314,575 square feet, anchored by
Bed, Bath and Beyond, Dick’s Sporting Goods, Marshalls, Michaels, and
*Troy Marketplace (Troy), 217,754 square feet, anchored by Nordstrom Rack,
LA Fitness, Golfsmith, PetSmart, and Total Hockey.
*The Shops at Old Orchard (West Bloomfield), 96,994 square feet, anchored
by Plum Market, an upscale grocer.
All of the Michigan shopping centers are located in Oakland County, Michigan.
Oakland County is the wealthiest county in Michigan and is one of the ten
highest per capita income counties with populations over one million people in
the United States. Over the past three years, each of the Michigan shopping
centers has undergone a major value-add redevelopment.
In conjunction with this agreement, the Company and its partner, Clarion
Partners, acknowledged their interest in continuing their partnership with the
ownership of the three remaining shopping centers. In addition, they have
confirmed their mutual desire to acquire up to $350 million of additional
shopping centers over the next several years through the existing joint
venture. The joint venture’s focus will be on stable, high quality assets in
leading metropolitan markets.
The acquisition is subject to customary closing conditions and is expected to
close by the end of the second quarter of 2013.
About Ramco-Gershenson Properties Trust
Ramco-Gershenson Properties Trust (NYSE:RPT) is a fully integrated,
self-administered, publicly-traded real estate investment trust (REIT) based
in Farmington Hills, Michigan. The Company’s business is the ownership and
management of multi-anchor shopping centers in strategic, quality of life
markets throughout the Eastern, Midwestern and Central United States. At
December 31, 2012, the Company had ownership interests in and managed a
portfolio of 78 shopping centers and one office building with approximately
15.0 million square feet of gross leasable area owned by the Company or its
joint ventures. The properties are located in Michigan, Florida, Ohio,
Georgia, Missouri, Colorado, Wisconsin, Illinois, Indiana, New Jersey,
Virginia, Maryland, and Tennessee. At December 31, 2012, the Company’s core
operating portfolio was 94.6% leased. For additional information regarding
Ramco-Gershenson Properties Trust visit the Company's website at www.rgpt.com.
This press release may contain forward-looking statements that represent the
Company’s expectations and projections for the future. Management of
Ramco-Gershenson believes the expectations reflected in any forward-looking
statements made in this press release are based on reasonable assumptions.
Certain factors could occur that might cause actual results to vary, including
deterioration in national economic conditions, weakening of real estate
markets, decreases in the availability of credit, increases in interest rates,
adverse changes in the retail industry, our continuing to ability to qualify
as a REIT and other factors discussed in the Company’s reports filed with the
Securities and Exchange Commission.
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Ramco-Gershenson Properties Trust
Dawn Hendershot, 248-592-6202
Director of Investor Relations and Corporate Communications
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