The purchase price for the 80 percent stake in the Pearlridge Center includes Blackstone’s share of $175 million in mortgage debt and $149.4 million in cash, Columbus, Ohio-based Glimcher said in a statement today. Glimcher plans to pay for the transaction with proceeds from a stock offering and money from a credit facility.
Investor demand for malls and shopping centers is rising as consumer spending increases. Pearlridge Center, the second- largest mall in Hawaii, was acquired in 2010 by a joint venture of affiliates of New York-based Blackstone and Glimcher, according to the statement. The property is more than 99 percent occupied.
“With sales of nearly $500 per square foot and a dynamic growth profile, this strategic investment is consistent with our goal of enhancing the quality of our real estate portfolio,” Michael Glimcher, the property company’s chairman and chief executive officer, said in the statement.
The deal, which is expected to be completed in the second quarter, was announced after the close of regular U.S. trading. Glimcher was unchanged at $10.21 today in New York. and has gained 16 percent in the past year. Blackstone rose 1 percent to $15.53 today. The shares have fallen 11 percent in the past year.
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