The $654-million acquisition, which is expected to close by the end of this quarter, will make New Plan the second largest owner of neighborhood and community shopping centers in the US. The 92 properties total 10.4 million sf of leaseable space, 71% of which is grocery-anchored and 90% of which was leased as of Sept. 30, 2001. The deal also includes a 10% managing membership interest in a joint venture with a private US pension fund that owns 13 grocery-anchored shopping centers located in six states.

In a press conference yesterday afternoon, New Plan CEO Glenn J. Rufrano called the transaction "a significant milestone marking a turning point in the execution of our business plan." That plan largely emphasizes focusing the company on the acquisition and development of neighborhood and community centers, with the two types of asset divided evenly.

To that end, "a little more than a year ago," New Plan set about monetizing non-franchise assets, Rufrano said. Since then, the company has disposed of an apartment portfolio that was sold for $380 million, non-core assets worth $101 million, and picked up $63 million in negotiations with jv partners and repayment of unscheduled debt for a total of $544 million. According to Rufrano, the CenterAmerica acquisition brings New Plan's total shopping center assets up to 308, with an aggregate 42 million sf of gross leaseable area. It also evens out New Plan's ratio of neighborhood versus community shopping center assets.