sold 9.52 million newly issued shares priced at $69.50 apiece in a follow-on offering.
Macerich will use the net issue proceeds of $649 million to repay debt incurred for the recent acquisition of Wilmorite Properties and Wilmorite Holdings and also to fund a portion of the $187.5 million purchase it announced on Thursday for a mall in Eugene, Oregon.
The real estate investment trust granted a 30-day option to purchase up to an additional 1.43 million shares to cover over-allotments. The offering is set to close on Jan. 19, 2006.
Deutsche Bank Securities Inc and J.P Morgan Securities Inc acted as joint book-running managers and underwriters for the offering.
Separately, Macerich Partnership, Macerich's operating partnership, said it plans to acquire the Valley River Center property at Oregon from Grosvenor for $187.5 million. The closing of the deal is expected to be in early February 2006. Macerich said that the return on cost for the initial year of ownership is expected to be 6.6%.
The Valley River Center, located in Eugene, Ore., houses a 916,000 square foot mall with 254,000 square feet of mall shop space, and plans to develop a 15 screen stadium style theater complex. The mall is currently managed by Macerich. Annual tenant sales per square foot are approximately $420 for the property.
Grosvenor is a private real estate developer company. Macerich is a real estate investment trust that has 82% ownership interest in Macerich Partnership
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