CalPERS Retail Advisor Counters Regency Rumor

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"Those who seem so certain about where things stand are those who do not call," says Halpert. "CalPERS has not made a decision to negotiate only with one institution; multiple conversations continue at this moment."Moreover, Halpert reiterated that the sale of the entire portfolio is only one of three options; CalPERS also may decide to sell only a partial interest in the portfolio or may decide not to sell it at all. "We consider all three seriously and will continue to do that," he says.The portfolio consists largely of grocery-anchored centers in Mid-Atlantic states and California. The report of an imminent deal with Regency sparked heavy trading of the company's stock Wednesday. On volume of more than one million shares--five times the three-month average--shares ended the day down $0.30 at $49.28. The report also prompted Russ Nussbaum of Bank of America Securities to issue an "Equity Research Heads Up!" on the potential transaction. "We believe the assets would be a good strategic fit for Regency, which already owns the largest collection of dominant grocery anchored centers in the US," he writes. "Geographically, this transaction would solidify the company's already strong presence in California [20% of current sf], and increase Regency's presence in the Mid-Atlantic, which currently represents just 6% of REG's square footage."GlobeSt.com reported last week that CalPERS was officially shopping the portfolio ( Click here for previous article). Halpert told GlobeSt.com at that time that while it is always considering its options, "recently we made more formal our interest in considering the possibility of a sale of an interest in or the whole of the portfolio" and retained Secured Capital to assist in the process.