CHICAGO-General Growth Properties has refinanced four malls for $966 million. The new mortgages conclude the firm’s refinancing plan for 2011, which has totaled about $3.9 billion.
The properties include the one-million-square-foot Northbrook Court mall in Northbrook, IL; the 1.7-million-square-foot Natick Mall in Natick, MA; the 1.2-million-square-foot Galleria at Tyler in Riverside, CA; and the 1.1-million-square-foot First Colony Mall in Sugar Land, TX.
The company, which declared bankruptcy in 2009, embarked on a massive refinancing campaign since its restructuring plan was approved last year, as well as the spin-off this summer of 30 of its lower-performing malls into a new firm, Rouse Properties Inc.
These four new fixed-rate mortgages have a weighted average term of 9.1 years and a weighted average interest rate of 4.63%, compared to the 5.66% rate on the prior maturing loans. Northbrook was financed for $131 million at 4.25%, due in 2021; Natick was arranged for $450 million at 4.6% due in 2019; Galleria was financed for $200 million at 5.05% due in 2023 and First Colony was arranged at $185 million at 4.5% due in 2019.
Sandeep Mathrani, CEO, said in a statement that one of the company’s goals has been to strengthen the balance sheet and liquidity while also reducing interest rates and extending the average debt maturity profile. The firm arranged $413 million in new loans for Staten Island Mall in Staten Island, NY and Boise Towne Square Mall in Boise, ID in September.
“We have accomplished our 2011 goals and are now focused on 2012 financing opportunities,” Mathrani said. The firm has ownership and management interest in 166 malls in 43 states.
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