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Mills Examines Final Bids on Portfolio

ARLINGTON, VA-Today is the deadline the company set for potential suitors to either buy its portfolio or bring additional capital to the table. The REIT controls 42 regional malls.

By Erika Morphy | Updated on June 13, 2006

ARLINGTON, VA-Today is the final day companies interested in either buying or investing in the Mills Corp., a REIT that controls 42 regional malls. According an SEC filing, it has entered into confidentiality agreements with more than 30 potential buyers and investors. Vornado Realty Trust and the Westfield Group have been mentioned as possible suitors.

The company has been in financial distress since last year. It expects to have to delay as much as a year its Meadowlands Xanadu project in New Jersey, and that the expected yield may be lower than initially anticipated. For previous coverage, click here.

Last month the company received some room to maneuver when it closed on $1.91 billion of a $2.23-billion financing with Goldman Sachs Mortgage Co., with the remainder expected to be closed over the next several months. The majority of the net proceeds were used to pay off its existing line of credit, two corporate-level term loans, the repayment of one recourse construction loan and the acquisition by GSMC of three recourse construction loans. The remaining funds, of approximately $387 million will be used for working capital and general corporate purposes.

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