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Taubman Pays $104M to Increase Stake in Center

BLOOMFIELD HILLS, MI-Taubman Centers expands its stake in a Tampa, FL, center and now controls 50.1% of International Plaza. Taubman bought a 23.6% stake from Ivanhoe Cambridge.

By Dan Heaton | Updated on July 02, 2004

BLOOMFIELD HILLS, MI-Taubman Centers has acquired an additional 23.6% interest in International Plaza in Tampa, FL from Canadian property firm Ivanhoe Cambridge, increasing its ownership in the center to 50.1%. The remaining interests are owned by Concorde Cos. of Tampa, FL.

The $104.5-million purchase price for Ivanhoe Cambridge’s interest in the center consists of $60.2 million of cash and $44.3 million of beneficial interest in debt attributable to this interest. The cap rate for the transaction is 6.4%, based on projected 2005 net operating income.

Additionally, Taubman paid off a $20-million note to Ivanhoe Cambridge at closing. This note, which was part of the initial equity investment in the project and could not be paid off until November, carried an interest rate of 13%.

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