Regency Centers Announces Portfolio Sale
JACKSONVILLE, Fla.--(BUSINESS WIRE)-- Regency Centers Corporation (REG) (the Company) announced today that it has entered into an agreement to sell a 15-property portfolio (the Portfolio) to an affiliate of Blackstone Real Estate Partners VII (Blackstone) for total consideration of $321.0 million representing a weighted average cap rate of 8.1%. The Portfolio is 90.3% leased, includes 2.1 million leasable square feet and is unencumbered by debt. All properties are wholly owned by the Company. Closing of the transaction is expected to occur on July 25, 2012. See Exhibit I to this press release for a complete listing of the properties.
The Company will maintain an approximate $47.5 million preferred equity investment in the Portfolio, which will earn an annual preferred return of 10.5%. This preferred investment cannot be redeemed prior to the 12-month anniversary of the closing date. Following the 12-month anniversary, Regency may call for the redemption of its preferred investment in whole or in part. Following the 18-month anniversary, each of Regency or Blackstone may initiate the redemption of Regencys preferred investment, in whole or in part. Regency will not provide leasing or management services for the Portfolio after closing.
The sale of these non-strategic assets is consistent with the stated objective for our capital recycling program this year, which is to be a net seller and to reinvest the proceeds into dominant, grocery-anchored shopping centers located in target markets with excellent prospects for growth and to reduce leverage," said Hap Stein, Chairman and Chief Executive Officer.
As a result of entering into this agreement, Regency has recognized a net impairment loss of approximately $20.0 million in the second quarter of 2012 and is increasing full-year 2012 pro-rata disposition guidance by $200 million to a range of $400-$500 million. Additional information will be provided in conjunction with the Company's second quarter earnings release and earnings conference call, scheduled for July 31 and August 1, 2012, respectively.
Regency Centers Corporation
Regency is the preeminent national owner, operator, and developer of dominant grocery-anchored and community shopping centers. At March 31, 2012, the Company owned 365 retail properties, including those held in co-investment partnerships. Including tenant-owned square footage, the portfolio encompassed 49.8 million square feet located in top markets throughout the United States. Since 2000 Regency has developed 207 shopping centers, including those currently in-process, representing an investment at completion of $3.0 billion. Operating as a fully integrated real estate company, Regency is a qualified real estate investment trust that is self-administered and self-managed.
Forward-looking statements involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements. Please refer to the documents filed by Regency Centers Corporation with the SEC, specifically the most recent reports on Forms 10-K and 10-Q, which identify important risk factors which could cause actual results to differ from those contained in the forward-looking statements.
Exhibit I: Portfolio Properties
% Leased -
|Applegate Ranch Shopping Center||
Marshalls, PETCO, Wal-Mart(1),
Best Buy, TJ Maxx, PetSmart,
Office Depot, Target(1)
|Plaza Rio Vista||Riverside||CA||67,622||83.5%||Stater Bros.|
|Beneva Village Shops||Sarasota||FL||141,532||91.1%||
Publix, Harbor Freight Tools,
|East Port Plaza||Port St. Lucie||FL||162,831||89.8%||Publix, Medvance, Walgreens|
|First Street Plaza||
|Martin Downs Town Center||Stuart||FL||64,546||100.0%||Publix|
|Martin Downs Village Center||Stuart||FL||112,666||88.1%||Martin Memorial, Bealls Outlet|
|Martin Downs Village Shoppes||Stuart||FL||48,937||81.8%||Walgreens|
|Frankfort Crossing||Chicago||IL||114,534||88.2%||Jewel Osco, Ace Hardware|
|Garner Town Square||Raleigh||NC||184,347||90.0%||
Kroger, PetSmart, Office Max,
Target(1), Home Depot(1)
PETCO, Office Max, Bed, Bath
& Beyond, Target(1), Kohl's(1),
|Preston Park Village||Dallas||TX||239,333||90.5%||Tom Thumb, Gap|
|Shops at Highland Village||Dallas||TX||351,635||88.4%||AMC Theatre, Barnes & Noble|
|(1)Retailer is a shadow anchor and not part of the owned property.|
Regency Centers Corporation
Patrick Johnson, 904-598-7422
Source: Regency Centers CorporationCopyright Business Wire 2012