GlobeSt.com UPDATE: Regency Could Renovate CalPERS Centers

Ian Ritter is national online editor for GlobeSt.com/RETAIL. The story was reported with assistance from Alex Finkelstein.

JACKSONVILLE, FL-Regency Centers Corp. and Macquarie Countrywide Trust’s $2.7-billion acquisition of 101 centers from CalPERS and First Washington Realty totaling 13 million sf could lead to a number of future redevelopments in the portfolio, said Mary Fiala, a Regency managing director today during a conference call on the deal. Most of those renovations could take place at the portfolio’s centers in Western states.

Fiala also revealed that the deal has a capitalization rate of about 6.3% and the grocery-anchored properties have low exposure to Wal-Mart Supercenters. But she added, “To have a strategy to hide from Wal-Mart is not a strategy. You have to have a strategy that competes. We believe that even if Wal-Mart came, [the portfolio] would compete very effectively.”