GREENWICH, CT—Starwood Capital Group and Taubman Centers Inc. said Wednesday that they had forged a deal for Starwood to buy seven Taubman malls for $1.4 billion. The acquisition boosts Starwood's retail operating platform, Starwood Retail Partners.

“"These assets will expand SRP's retail portfolio to 28 properties totaling 26.8 million square feet across 15 states,” says Barry Sternlicht, chairman and CEO of Starwood Capital. “The Taubman portfolio broadens our relationships with higher-end department stores and in-line tenants and gives us an excellent opportunity to continue to produce attractive returns for our investors.”

For Taubman, the sale continues the Bloomfield Hills, MI-based mall operator's strategy of recycling capital, maximizing NOI growth and create NAV over time. “Given today's investor interest in high quality regional malls, we have taken advantage of the opportunity to further enhance our growth and valuation, while increasing our industry leading productivity and modestly reducing the size of our base,” says Robert S. Taubman, chairman, president and CEO of Taubman Centers.