X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(Ian Ritter is national online editor for GlobeSt.com/RETAIL.)

CHEVY CHASE, MD-The Mills Corp. is selling its three fully developed foreign assets to Canadian mall owner Ivanhoe Cambridge for $981 million. The centers are Vaughan Mills, in Ontario, Canada; St. Enoch Centre, in Glasgow, Scotland; and Madrid (Spain) Xanadu.

The deal comes as Mills is in need of cash, as management said just last week that costs for its Meadowland Xanadu project in East Rutherford, NJ, would total about $2 billion, $500 million more than expected. After financial losses and accounting flaws, Mills has been up for sale.

Ivanhoe currently owns a 50% interest both Vaughan Mills and St. Enoch Centre. The two developed Vaughan in 2004 and acquired St. Enoch last year. Mills built Madrid Xanadu in 2003. Mills will have proceeds of about $500 million after paying off the costs of the projects. The deal values the three centers at $1.5 billion, according to a company statement. The parties say they expect to close the sale of all three properties by Sept. 20.

Ivanhoe Cambridge, based in Montreal, is one of the largest Canadian retail-property owners, with 65 regional and super-regional centers. The company also owns a handful of malls in the US and Europe and is pursuing development opportunities in Asia.

A Bank of America analyst report calls the sale of the centers “a step in the right direction” for Mills, but points out that the company still needs to raise another $600 million to $700 million to pay off a $1.9-billion loan it has with Goldman Sachs.

In June, Mills, the owner of 42 centers in North America and Europe, announced that it had received “interest from a variety of parties” in acquiring the company. Most recently management said that it has started work on the construction of the 265,000-sf retail portion of 108 North State St., a mixed-use development in Chicago.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.