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Mall Owner Musters $125M Advance OK

HOUSTON-MetroNational won't be tapping the capital for 18 months, but it has locked in the financing with New York State Teachers Retirement System. The loan will replace a credit line now being tapped for the owner's share of a $300-million renovation.

By Jennifer Brenner Andrade | Updated on November 13, 2002

HOUSTON-The owner of Memorial City Mall has secured forward financing for $125 million to replace a line of credit now being tapped for an expansion. The New York State Teachers Retirement System will put up the capital for Houston-based MetroNational Corp.

The loan will not be funded for 18 months, but it is locked in at today’s interest rates. The interest rate is closely guarded, but it is “favorable by current market standards which, for a property like the mall, would be somewhere between 150 and 250 points above the 10-year treasury,” Brad Fillmore, MetroNational CFO, tells GlobeSt.com.

A MetroNational spokeswoman says the renovation will cost $300 million. MetroNational is kicking in about $110 million and the balance is coming from mall tenants.

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