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Glimcher closes on joint venture with The Blackstone Group

Glimcher Realty Trust has closed on its previously announced joint venture with The Blackstone Group for the acquisition and management of two regional malls.

An affiliate of Blackstone will acquire 60 per cent of the joint venture and an affiliate of Glimcher will retain the remaining 40 per cent interest.

The assets for the joint venture consist of two existing Glimcher mall properties: Lloyd Center in Portland, Oregon and WestShore Plaza in Tampa, Florida.

The gross value for the combined transaction is approximately USD320m and includes assumption of the approximately USD215m in mortgage loans currently in place on the properties.

The transaction generated net proceeds of approximately USD60m to Glimcher after considering debt assumption fees and ordinary closing costs. These proceeds were applied against outstanding borrowings under Glimcher’s credit facility.

Accordingly, the current outstanding balance on the credit facility has been reduced to approximately USD232m.

Glimcher Properties will continue to manage the operation of Lloyd Center and WestShore Plaza.

"We are excited about our new relationship with Blackstone, a highly-respected and strategic investor, which furthers our goal of raising additional capital now while positioning our mall platform for future potential growth as the economy recovers," says Michael P. Glimcher (pictured), chairman of the board and chief executive of Glimcher.

Glimcher Realty Trust, a real estate investment trust, focuses on the ownership, management, acquisition and development of malls, which includes enclosed regional malls and open-air lifestyle centres.

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