"We're effectively recycling capital from a joint venture vehicle," said New Plan's CEO Glenn J. Rufrano during a conference call on the sale. "We are also improving our financial flexibility and credit profile." The portfolio, which is scattered across the US, is comprised primarily of stabilized assets. Approximately 44% of the assets have been redeveloped and there's an average occupancy of approximately 96%.

Earlier this year, after Australia's Multiplex said it was no longer engaging in talks about acquiring a $700-million portfolio belonging New Plan, executives at the locally based REIT said they were still "continuing to explore such opportunities." Rufrano said the firm did pursue capital from the US and other countries, but felt comfortable with Australian-based funds. "There is an abundance of equity out there, but the Australian capital market is deep and long-term."

Concurrent to the sale, CBL and Galileo will exchange CBL's equity interest in the partnership for two properties. New Plan will purchase an asset management fee stream from the partnership for $18.5 million of cash. New Plan will also acquire CBL's property management rights with the partnership for $22 million of cash and will purchase additional property management rights in 2008 for nine properties that are currently third-party managed for $7 million. "CBL is focused on its mall business as a long-term goal," said Rufrano "And they got a damn good price."