CBL & Associates Properties Inc., a mall real estate investment trust in Chattanooga, Tenn., is paying $108.7 million for its 75 percent stake in the 90-store El Paso center and for half ownership in a 70-plus store outlet mall in Gettysburg, Pa. Both are owned and managed by Horizon Group Properties, based in the Chicago area.
Horizon Group will continue to manage both malls, a CBL official said.
The companies did not divulge the amounts paid for each center.
CBL is paying $38.2 million in cash, and is assuming $70.5 million in Horizon debt for its ownership stakes. CBL is assuming 75 percent of the outstanding loan on the El Paso center and half of the loan on the Gettysburg center.
"This acquisition allows us to grow our presence in the outlet center industry by investing in two established and successful centers," Stephen Lebovitz, CBL president and chief executive officer, said in a written statement.
Horizon officials were not immediately available for comments.
The 378,000 square-foot El Paso outlet mall was 99.6 percent occupied at the end of last year, and the 250,000 square-foot outlet mall in Gettysburg was 98.2 percent occupied at the end of last year, the companies reported.
CBL is a partner in two other Horizon outlet malls. It owns 75 percent of The Outlet Shoppes at Oklahoma City, which opened last summer, and it has 75 percent ownership in The Outlet Shoppes at Atlanta, which is to go under construction soon in Woodstock, Ga.
CBL has ownership or management interests in 157 properties across the United States, including 89 regional malls and open-air centers. It has interests in nine Texas shopping centers, according to its website.
Horizon operates six outlet malls in the United States, and has three under development, including one in Laredo, according to the company's website.
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