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New Plan Sells $968M Portfolio

NEW YORK CITY-A partnership will purchase 69 community and neighborhood shopping centers from the locally based REIT.

By Barbara Jarvie | Updated on July 20, 2005

NEW YORK CITY-New Plan Excel Realty has found an Australian partner in Galileo America LLC, a joint venture currently comprised of CBL & Associates and Galileo America Inc. Galileo America is a US REIT wholly-owned by Galileo Shopping America Trust, an Australian listed property trust. The partnership will purchase 69 community and neighborhood shopping centers aggregating 10.4 million sf for approximately $968 million.

“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.”

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