Rouse Properties Refinances Animas Valley Mall for $51.8 Million
Company Release – 10/26/2012
NEW YORK–(BUSINESS WIRE)– Rouse Properties, Inc. (NYSE: RSE), a national owner and operator of enclosed regional malls, today announced that it has closed on a new $51.8 million mortgage loan for Animas Valley Mall, the only enclosed regional mall serving the Four Corners market of New Mexico, Colorado, Arizona and Utah. The non-recourse loan bears interest at a fixed rate of 4.5% and matures in ten years.
This asset was previously financed within the Company’s Term Loan, which bears interest at a rate of LIBOR + 450 basis points. Approximately $37.1 million of the proceeds were used to reduce the Term Loan balance, a portion of which was used to pay the property’s release allocation. Net proceeds to the Company after related closing costs are approximately $14.3 million.
“The refinancing of Animas Valley Mall reflects a continuation of our strategy to improve the Company’s financial capacity and flexibility,” said Andrew Silberfein, president and chief executive officer of Rouse Properties. “This attractive financing extends our maturity schedule, generates excess cash proceeds to the Company, and is indicative of the underlying value of the malls in our portfolio.”
Animas Valley Mall has a dominant presence in its trade area as the only regional mall within approximately 170 miles. The 464,000 square foot, single-level enclosed mall has a long history of solid performance and strong sales growth. The mall, anchored by Dillard’s, jcpenney and Sears, has recently completed new leases with leading retailers such as Aeropostale, Lids, Justice and The Children’s Place.
About Rouse Properties, Inc.
Rouse Properties, Inc. (NYSE:RSE) is a publicly traded real estate investment trust headquartered in New York City and founded on a legacy of innovation and creativity. Among the country’s largest publicly traded regional mall owners, the Company’s geographically diverse portfolio spans the United States from coast to coast, and includes 31 malls in 19 states encompassing approximately 22 million square feet of space. For more information please visit: www.rouseproperties.com.
Rouse Properties, Inc.
Investor Relations, 212-608-5108
Source: Rouse Properties, Inc.