Retailer Taubman Centers Inc. sells 49% of International Plaza

BUYER: TIAA-CREF and APG
SELLER: Taubman Centers Inc.
PROPERTY: 2223 N. West Shore Blvd., Tampa (49.9% interest)
PRICE: $499 million

PLANS, DESCRIPTION: Retail real estate investment trust Taubman Centers Inc. sold a 49.9% interest in Tampa's International Plaza to a joint venture that is 51% owned by financial services company TIAA-CREF and 49% owned by Dutch pension services APG for $499 million.

The purchase price consists of $337 million in cash and $162 million of beneficial interest in debt.

The TIAA-CREF and APG joint venture targets dominant super-regional malls located in major U.S. markets through joint venture acquisitions with mall operators.

“The acquisition of an interest in this market-leading asset is a compelling addition to the super-regional mall portfolio that APG has assembled globally,” Steven Hason, managing director and co-head of Americas Real Estate at APG Asset Management U.S., says in a press release. “We look forward to participating in the ownership and continued success of International Plaza.”

Taubman plans to use the proceeds from the sale to pay off a loan on Stony Point Fashion Park in Richmond, Va., and for general business uses.

“We're delighted to align ourselves with two great institutional partners,” Robert Taubman, chairman, president and CEO of Taubman Centers, says in a press release. “This transaction strengthens our balance sheet and highlights the extraordinary growth of this powerhouse asset.”

Located near the Tampa International Airport, the 1.2-million-square-foot center, which opened in September 2001, is anchored by Dillard's, Neiman Marcus and Nordstrom. It opened in September 2001.

Taubman will continue to lease and manage the center.

Eastdil Secured LLC represented the seller.

Founded in 1950, Taubman owners, manages and/or leases 28 regional, super-regional and outlet shopping centers in the United States and Asia. Taubman acquired the final 49.9% interest in International Plaza from CSAT LP for $437 million in late 2012.

TIAA-CREF is a national financial services firm with $564 billion in assets under management, as of Dec. 31.

APG's APG Asset Management managed pension assets totaling about EUR345 billion at the end of 2013.