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CHICAGO-A newly formed joint venture between retail REIT General Growth Properties, Inc. and the state Teachers’ Retirement System has acquired four malls in Cincinnati, Riverside, CA; and Taunton, MA. Also, the $634-million deal includes the Teachers’ Retirement System putting its Clackamas Town Center in Portland, OR into the new entity, GGP-TRS L.L.C.

The purchases involve $222 million in equity from the 50/50 joint venture. A $75-million mortgage on Silver City Galleria in Taunton, MA remains in place while new non-recourse mortgages for $337 million allow for the acquisition of Galleria at Tyler in Riverside, CA and Kenwood Towne Centre in Cincinnati.

General Growth says sales now average about $408 per sf at the newly-acquired enclosed malls, with occupancy averaging about 86%. The joint venture expects to see $55 million of net operating income over the next twelve months, which works out to an overall capitalization rate of 8.7%.

“All four of these regional shopping centers produce strong current cash flow,” says General Growth chief executive officer John Bucksbaum in a statement.

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