The first closing took place on Nov. 13, and involved eight of the properties for approximately $205 million. According to a statement released by Hines, the remaining four assets will close when their loan assumptions have been finalized. Calls to Weingarten and Hines seeking comment on the deal were not returned by deadline.
To facilitate the transaction, a major life insurance company will provide a $100 million loan anticipated to close by year-end. Weingarten provided preferred equity of $134 million for the initial closing. The loan's proceeds will reduce Weingarten's preferred equity position upon closing. Weingarten will handle management and leasing of the assets.
The assets are in five states. The trade area populations exceed 100,000 people, while the average household income exceeds $80,000. The centers are anchored by well-known regional and national grocers including Kroger, Randall's/Safeway, H-E-B, Publix, B.J.'s Wholesale and Harris Teeter. The portfolio is more than 96% leased.
"WRI is extremely pleased to become partners with a world-class organization that also has its deep roots in our wonderful city – Houston. We believe this transaction will provide stable and growing returns to the joint venture while also meeting our objective of recycling capital and building our assets under management," comments Andrew M. Alexander, president and CEO of Weingarten, in a statement unveiling the joint venture.
"We are pleased to acquire an interest in a portfolio of quality supermarket-anchored shopping centers in locations with strong demographics," says Charles Hazen, President and CEO of Hines REIT in the same statement. "This is our first joint venture with WRI and we are very pleased with this new relationship."
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
