The Blackstone Group has acquired a majority stake in two US shopping malls by forming a joint venture with existing owner, Glimcher Realty Trust.
The newly-formed joint venture is acquiring the Lloyd Center in Portland, Oregon and WestShore Plaza in Tampa, Florida, the pair said in a statement.
The $320 million deal includes the assumption of about $218 million in mortgage loans currently in place on the properties.
About $60 million of the sale price will go to New York-listed Glimcher which will help reduce its existing debt.
Under the terms of the deal – slated to complete next month – the joint venture will acquire the entities that own the two properties. Blackstone will acquire 60 percent of the joint venture and Glimcher will retain the remaining 40 percent.
The parties added that the transaction required a $6.3 million security deposit, which is non-refundable, provided first mortgage lenders give consent to the transaction.
Jonathan Gray, senior managing director at Blackstone said: “We believe there should be regional malls available at attractive pricing during this cycle.”
Glimcher chairman, Michael Glimcher, said the company would jointly evaluate additional mall acquisitions in the future.
He added the joint venture furthered its goal of raising capital through partial sales of its Lloyd Center and WestShore properties.
“This relationship will help Glimcher in the near-term while also positioning us to benefit from the economic recovery when it occurs,” added Glimcher.