GREENWICH, CT—Starwood Capital Group andTaubman Centers Inc. said Wednesday that they hadforged a deal for Starwood to buy seven Taubman malls for $1.4billion. The acquisition boosts Starwood's retailoperating platform, Starwood Retail Partners.

“"These assets will expand SRP's retail portfolio to 28properties totaling 26.8 million square feet across 15 states,”says Barry Sternlicht, chairman and CEO ofStarwood Capital. “The Taubman portfolio broadens our relationshipswith higher-end department stores and in-line tenants and gives usan excellent opportunity to continue to produce attractive returnsfor our investors.”

For Taubman, the sale continues the Bloomfield Hills, MI-basedmall operator's strategy of recycling capital, maximizing NOIgrowth and create NAV over time. “Given today's investor interestin high quality regional malls, we have taken advantage of theopportunity to further enhance our growth and valuation, whileincreasing our industry leading productivity and modestly reducingthe size of our base,” says Robert S. Taubman,chairman, president and CEO of Taubman Centers.