In $1B Deal, Brookfield Sells Stake in 3 Super Malls to CBRE Global Investors
“We believe that Class A super-regional malls remain one of the most attractive investments available today.”
Brookfield Property Partners has sold a 49% stake in three super regional malls to CBRE Global Investors, which made the acquisition on behalf of institutional investor clients. The deal values the properties at $1 billion, according to a report in the Wall Street Journal.
The portfolio consists of 3.7 million square feet of retail space and is 98% leased. The malls are:
- Cumberland Mall: a 1 million square foot super-regional mall in northwest Atlanta
- Ridgedale Center: a 1.2 million square foot super-regional mall in western Minneapolis
- The Parks Mall at Arlington: a 1.5 million square foot super-regional mall between Dallas and Fort Worth
The acquisition indicates that big bets on retail are still viable investment strategies for some institutions.
“We believe that Class A super-regional malls remain one of the most attractive investments available today,” said David Morrison, CIO-Americas, CBRE Global Investors, in a prepared statement. “These assets have a historic track record of material outperformance, dominating their retail catchment within their submarkets, and we expect that assets of this quality and scale should maintain that advantage going forward.
The acquisition was made via a JV with Brookfield. The properties were previously owned by GGP and the REIT’s operations and leasing teams will continue to operate the portfolio as property manager and leasing agent.
CBRE Global Investors currently manages approximately $23 billion in retail assets globally.