Kan Am Grund is an affiliate of Germany-based Kan Am Group. One of its two open-end funds also recently acquired a 50% stake in Mills' Great Mall of the Bay Area. Kan Am's closed end funds are a joint venture partner with Mills at 10 operating properties and two development projects.

Under the terms of the Opry Mills partnership arrangement, both parties will receive an un-guaranteed 9% preference on equity. Mills' equity interest and cash flows in Opry Mills will be increased disproportionately after payment of the 9% preference. This structure is expected to provide Mills with a higher first-year return on its equity versus a sale of a straight-up 50% partnership interest in a structure priced to provide an un-leveraged first-year yield of 7.48%.

Mills says it expects to use the proceeds from the transaction to fund its development pipeline, to reduce the balance on its outstanding line of credit and for general corporate purposes. WestWind Capital Partners served as investment advisor on behalf of Kan Am US Grundinvest Fonds in both the Opry Mills and Great Mall of the Bay Area transactions.