Shareholder Buys 49% Stake in Horizon Centers

CHICAGO-Major shareholder Howard Amster’s Pleasant Lake Apts. Limited Partnership has agreed to pay $11.5 million for a 49% stake in Horizon Group Properties Inc.’s nine outlet centers in seven states. An office building in Muskegon, MI, also is part of the proposed deal in addition to the 1.8-million-sf retail portfolio.

Pleasant Lake has until Nov. 14 to complete the due diligence on outlet centers in Tulare, CA; Holland, MI; Monroe, MI; Medford, MN; Warrenton, MO; Gretna, NE; Laughlin, NV; and Sealy, TX.

Pleasant Lake would pay $9 million this year for a 37% interest in those outlet centers, and another $2.5 million in January for the remaining 12% interest.

“This transaction will provide us with capital for a wide range of opportunities,” says Horizon Group Properties president and CEO Gary J. Skoien. “We can reduce our current outstanding debt or consider other investment opportunities, including our land development project in Huntley.”

The company has $111 million in mortgages and debts, some of which are in default. Horizon Group Properties owns 655 acres in the far northwest suburb of Huntley, which continues to see development of the Sun City residential community. The company’s investment in the Huntley acreage is worth about $30 million.

“I believe that this development in northwest suburban Chicago presents a great opportunity for the Company and its shareholders,” Skoien adds.