New Plan Buys 92 Shopping Centers in $654-Mil Deal

NEW YORK CITY-New Plan Excel Realty Trust Inc. has agreed to purchase nearly the entire CenterAmerica Property Trust LP portfolio. The Manhattan-based REIT will pay $354 million in cash and assume an additional $300 million in outstanding debt for the acquisition of 92 neighborhood and community shopping centers.

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.