CBL Acquires Outlet Centers - Analyst Blog
April 19 2012 - 7:45AM
Zacks
CBL & Associates
Properties, Inc. (CBL) recently announced
the acquisition of a 75% interest in The Outlet Shoppes at El Paso
in El Paso, Texas, and a 50% interest in The Outlet Shoppes at
Gettysburg in Gettysburg, Pennsylvania, for a total consideration
of $108.7 million. The purchase price included $38.2 million in
cash and the assumption of $70.5 million in debt. Horizon
Group Properties is currently managing both these properties.
The Outlet Shoppes at El Paso is
placed between El Paso and Las Cruces, New Mexico and attracts over
2.3 million residents of Juarez, Mexico. The 378,000 square feet
outlet center was 99.6% occupied as of December 31, 2011.
The Outlet Shoppes at Gettysburg is
located along Highway 15 near the renowned Gettysburg National
Military Park. The 250,000 square feet outlet center was 98.2%
occupied as of December 31, 2011.
These acquisitions are expected to
enhance the quality of CBL’s portfolio and further strengthen its
presence in the outlet center industry. The company is already
involved in a successful partnership with Horizon in two other
outlet centers. These include the Outlet Shoppes in Oklahoma City,
and the Outlet Shoppes in Atlanta, which is under development and
is expected to open in summer 2013. The company looks forward to
sustaining its success through expansions and further
acquisitions.
Headquartered in Chattanooga,
Tennessee CBL is one of the largest and most active owners and
developers of malls and shopping centers in the United States. CBL
owns and manages 157 properties, including 89 regional
malls/open-air centers.
CBL currently retains a Zacks #2
Rank, which translates into a short-term Buy rating. We are also
maintaining our long-term Neutral recommendation on the stock. One
of its competitors, Simon Property Group Inc (SPG)
also holds a Zacks #2 Rank
CBL&ASSOC PPTYS (CBL): Free Stock Analysis Report
SIMON PROPERTY (SPG): Free Stock Analysis Report
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