Retail Properties of America, Inc. Announces Sale of 13 Former Mervyns Locations
Transaction Reflects Successful Execution of RPAI's Strategic Plans
OAK BROOK, Ill.--(BUSINESS WIRE)-- Retail Properties of America, Inc. (NYS: RPAI) today announced the successful disposition of 13 former Mervyns locations for approximately $100.4 million. Proceeds from the sale were used to repay, in its entirety, the outstanding loan on the 23-asset Mervyns portfolio.
"This sale is an important milestone in our strategic plan and demonstrates our ongoing commitment to focus on our three major initiatives for 2012, which include strengthening the portfolio, lowering our risk profile, and creating long-term value for our shareholders," stated Steve Grimes, President and Chief Executive Officer for RPAI.
The 13 assets represent approximately one million square feet and are currently 99% leased. The portfolio is located in California and includes the following retailer mix; four Hobby Lobby locations, four Kohl's locations and five Burlington Coat Factory locations.
"This successful transaction is a result of our calculated approach to leasing these boxes to compelling, value-oriented retailers, and furthers our strategic objective of focusing on multi-tenant retail," said Shane Garrison, Executive Vice President and Chief Operating Officer for RPAI. "We anticipate closing on the sale of the majority of the remaining former Mervyns locations by the end of the year," he added.
Retail Properties of America, Inc. is a fully integrated, self-administered and self-managed real estate company that owns and operates high quality, strategically located shopping centers across 35 states. The company is one of the largest owners and operators of shopping centers in the United States. The company is publicly traded on the New York Stock Exchange under the ticker symbol RPAI. Additional information about the company is available at www.rpai.com.
The statements and certain other information contained in this press release, which can be identified by the use of forward-looking terminology such as "may," "expect," "continue," "remains," "intend," "aim," "should," "prospects," "could," "future," "potential," "believes," "plans," "likely," "anticipate," and "probable," or the negative thereof or other variations thereon or comparable terminology, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that such plans, intentions, expectations or strategies will be attained or achieved. Furthermore, these forward-looking statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to, general economic, business and financial conditions, changes in the Company's industry and changes in the real estate markets in particular, market demand for and pricing of the Company's common stock, general volatility of the capital and credit markets, competitive and cost factors, the ability of the Company to enter into new leases or renew leases on favorable terms, defaults on, early terminations of or non-renewal of leases by tenants, bankruptcy or insolvency of a major tenant or a significant number of smaller tenants, the effects of declining real estate valuations and impairment charges on the Company's operating results, increased interest rates and operating costs, decreased rental rates or increased vacancy rates, the uncertainties of real estate acquisitions, dispositions and redevelopment activity, the Company's failure to successfully execute its non-core disposition program and capital recycling efforts, the Company's ability to create long-term shareholder value, the Company's ability to manage its growth effectively, the availability, terms and deployment of capital, regulatory changes and other risk factors, including those detailed in the sections of the Company's most recent Form 10-K and Form 10-Qs filed with the SEC titled "Risk Factors". We assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Retail Properties of America, Inc.
Director - Investor Relations
KEYWORDS: United States North America California Illinois
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