Liberty International Group, through its wholly owned US subsidiary, Capital & Counties USA Inc., has agreed to purchase the Serramonte Shopping Center for $119 million at an initial yield of 9%. The property is subject to a $66.9 million non-recourse mortgage at 6.93 % repayable in January 2005. The balance of the consideration will be provided from the group's overall cash resources.

The Serramonte Shopping Center is an 850,000-sf, single level retail mall, anchored by Macy's, Target and Mervyn's. The property features 4,645 car parking spaces on 80 acres. It is located at the intersection of interstate Highway 280 and Highway 1 immediately to the South of the City of San Francisco and is the centerpiece of a highly successful regional retail hub in Northern California, which includes a collection of "big box' retailers such as Home Depot, Nordstrom Rack, Costco, Bed Bath and Beyond and Toys 'R Us.

According to Liberty International, this acquisition represents a significant step forward for the group's US entity, which had some $200 million of assets at the end of 2001, and will be immediately earnings enhancing for the group. The center is considered to provide a number of value adding opportunities.