Rouse Properties Acquires Westfield Carlsbad in Carlsbad, California
November 12 2015 - 4:15PM
Business Wire
Announces Renovation and Rebranding Vision to
Create a One-Stop Shopping, Dining and Entertainment Attraction
Regional Retail Portfolio in California Now
Includes Eight Dynamic Retail Properties
Rouse Properties, Inc. (NYSE:RSE) today announced it has
completed the acquisition of Westfield Carlsbad, a 1.1 million
square foot super regional enclosed mall located in Carlsbad,
California for a total purchase price of $170 million, excluding
transaction costs and closing adjustments.
Rouse’s plan involves rebranding the center as The Shoppes at
Carlsbad and completing a comprehensive renovation, which will
significantly enhance the overall shopping and social experience.
Improvements will include a complete interior make-over and the
addition of a contemporary and engaging streetscape to accommodate
high-volume restaurants, which bring together the indoor and
outdoor elements. Rouse believes its plan will restore the center
to a position of prominence within the prime retail landscape of
the Carlsbad market.
“We couldn’t be more excited to join the Carlsbad community,”
said Andrew Silberfein, president and chief executive officer
of Rouse Properties. “We see a tremendous opportunity to apply
our entrepreneurial national platform to reposition the property.
As we move forward with this process, we will work in close
coordination with City officials to ensure we deliver a product and
retail experience that is unique for the marketplace and that the
families in the community can be proud of.”
The center is home to a strong existing lineup of 150 retailers
such as Macy’s, Forever 21, LOFT, Victoria’s Secret, Vans, Panera
Bread, Peet’s Coffee & Tea, and features high-quality
entertainment and lifestyle tenants including a 12-screen Regal
Cinemas with luxury seating and a state-of-the-art 24 Hour Fitness.
Rouse expects its strategic renovation initiative to improve rental
rates, occupancy, leasing and sales productivity, creating
significant long-term value at the asset.
Conveniently located immediately off Interstate 5, the main
north/south corridor in the state, the center is the only enclosed
mall within a 15 mile radius and caters to an extremely dense and
affluent trade area of approximately 500,000 people with an average
income of $84,000. The center, centrally located in Carlsbad, one
of Southern California’s most picturesque, seaside resort cities
that attracts nearly three million tourists annually, is also in
proximity to the West Coast’s only LEGOLAND, luxury hotels such as
the Four Seasons and Park Hyatt, and world-class beaches and golf
courses.
Mr. Silberfein added, “This strategic acquisition will be a
perfect fit to our dynamic and growing California portfolio. We
will apply our proven operating platform to improve the overall
asset quality and retailer offering as we have successfully done
throughout the country.”
The acquisition was funded through the issuance of $140 million
of preferred operating partnership units to Westfield. These
preferred equity units carry a five percent coupon and are
redeemable by Rouse Properties after a three year lock-out date, or
by Westfield after 10 years, in the form of cash or common stock
based on 96% of the volume-weighted average price of the Company’s
shares over the 30 trading days prior to the date of redemption, or
any combination at the option of Rouse Properties (subject to a tax
protection period through December 2021).
About Rouse Properties
Rouse Properties, Inc. (NYSE:RSE) is a publicly traded real
estate investment trust headquartered in New York
City and was 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 36 malls and
retail centers in 21 states encompassing approximately 25.2 million
square feet. For more information please
visit: www.rouseproperties.com.
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