CBL Closes Middle Phase Galileo Deal

CHATTANOOGA, TN-The locally based public company CBL & Associates Properties Inc. has completed the middle phase of a $500-million-plus transaction with Galileo America REIT, the U.S. affiliate of Australia-based Galileo America Shopping Trust.

The locally based public company is in the process of selling 90% of its ownership interest in 51 power and community centers to Galileo America REIT for total consideration of $516 million. The $355-million first phase of the transaction, which closed in October, transferred 90% ownership of 41 centers to the new REIT.

In this latest closing, CBL sold to the joint venture six power and community centers for total consideration of approximately $92.4 million. CBL received approximately $62.7 million after closing costs and retirement of debt. The joint venture assumed approximately $2.8 million of existing debt on one of the properties, and CBL retired $25.9 million in debt associated with one property. The six properties generated net operating income of approximately $4.2 million in 2003. One of the six properties, opened in October 2003, was in operation for the last three months of the year.