FARMINGTON HILLS, MI- The Ramco-Gershenson Properties Trust just announced that they have agreed to acquire Clarion Partners' 70% interest in 12 of 15 shopping centers owned by Ramco/Lion Venture LP, their joint venture, for $151.9 million in cash and the assumption of Clarion's share of the debt, or about $104.9 million. RGPT, a Michigan-based REIT, already owns 30% of the properties.

All 12 shopping centers are in Michigan's Oakland County or Florida and have grocery stores or other established retailers such as Bed, Bath & Beyond, TJX Companies and LA Fitness as anchor tenants. The 2.2 million SF portfolio was 93% occupied at the end of last year.

Although RGPT had, at the end of last year, ownership interests in and managed a portfolio of 78 shopping centers across the country, company officials said they want to upgrade that portfolio by selling centers in what they call “non-core” areas and concentrating in places like suburban Oakland County, the wealthiest county in Michigan.

“The purchase of our partner's interest in these 12 assets reflects the Company's focus on growing its portfolio of large, market dominant shopping centers in strong metropolitan trade areas,” said Dennis Gershenson, president and chief executive officer of RGPT. “The completion of this transaction will increase our assets by more than 25% while achieving an attractive risk-adjusted return. Our familiarity with the properties, the strength of their tenancies and demographic profiles, and the potential for future upside were all considerations in entering into this agreement.”

The 8 properties in Florida include both the 263,721 SF Mission Bay Plaza in upscale Boca Raton and the 238,901 SF Marketplace of Delray in the equally tony Delray Beach. The Michigan properties include Hunter's Square in Farmington Hills, Winchester Center in Rochester Hills, Troy Marketplace in Troy and The Shops at Old Orchard in West Bloomfield.

The joint venture partners also said that they will continue to jointly own the three remaining shopping centers and acquire even more, worth as much as $350 million, over the next few years.

Instant Insights /

Ramco Trust Buys Out Partner

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