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Starwood agrees $1.4bn deal to buy seven US malls from Taubman

24 Jun 2014

Broadway mallReal estate private equity major Starwood Capital has agreed to buy seven malls from Taubman Centers for $1.4bn.

About $785m of the buyout price will be made up of cash, with the remaining $620m property-level debt.

Taubman’s share of cash at the time of sale is expected to be $765m, with $595m worth of property-level debt.

The announcement follows hot on the heels of Starwood announcing that it will triple its stock of select-service hotels by acquiring 188 from TMI Hospitality using its Global Opportunity Fund X.

The mall deal will bring Starwood’s retail portfolio to 28 properties and 26.8 million square feet across 15 US states.

Starwood’s chairman and CEO Barry Sternlicht said, “This acquisition is highly strategic for Starwood and its retail operating platform, Starwood Retail Partners.

“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.”

Taubman Centers currently owns, leases and/or manages 27 retail properties in the US and South Korea.

The malls in the transaction include the MacArthur Center in Virginia and Willow Bend in Texas.

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