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Taubman Purchases $88M Stake in Shopping Mall

CONCORD, CA-Spending $28 million in cash and taking on $66 million in debt, Taubman Centers has purchased General Electric Pension Trust's 50% general partnership interest in Sunvalley, a 1.3 million-sf shopping mall in Concord.

By Michelle Savage | Updated on March 29, 2002

CONCORD, CA-Taubman Centers Inc. has entered into definitive agreements to purchase General Electric Pension Trust’s 50% interest in a 1.3 million-sf shopping center here for $88 million. A. Alfred Taubman, the largest shareholder of Taubman Centers Inc., already controls the other 50%. Taubman has managed the Sunvalley shopping mall since it was developed.

The definitive purchase agreement calls for Taubman to pay $22 million in cash and take on $66 million of debt that encumbers the property, which is anchored by JCPenney, Macy’s and Sears. To cover the cash component, Taubman Centers says it will use part of the proceeds from the sale of La Cumbre Plaza and Paseo Nuevo, two shopping centers in Santa Barbara.The transaction bears a cap rate of 10.8%.

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