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Chelsea Will Buy Four Outlet Malls for $193M

ROSELAND, NJ-The properties, one of them in New Jersey, will flip from the portfolio of New Plan Excel Realty Trust. Three of them will be converted to the new owner's Premium Outlet brand.

By Eric Peterson | Updated on November 12, 2002

ROSELAND, NJ–Chelsea Property Group, the retail REIT based here, has signed a definitive agreement to buy four outlet centers from New Plan Excel Realty Trust for an all-cash aggregate price of $193 million. The deal falls on the heels of the New York-based New Plan’s agreement to buy a 58-center retail portfolio from Equity Investment Group for $437 million.

The purchase price reflects a cap rate of about 11% on estimated 2003 net operating income, according to a statement issued by Chelsea. The transaction is expected to close by the end of the year.

“Collectively, the outlet centers represent one of the strongest sizable portfolios in the outlet mall industry,” according to David Bloom, chairman and CEO of Chelsea. “We’re delighted to have the opportunity to add them to our share of the better outlet properties, and we intend to convert three of them to our Premium Outlet brand within the next 12 to 24 months.”

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