HONOLULU — Glimcher Realty Trust (NYSE: GRT) has plans to acquire an 80 percent indirect ownership interest in the 1 million-square-foot Pearlridge Center, located in Honolulu, for $289.4 million. Glimcher currently owns a 20 percent interest in the center with Blackstone Real Estate Partners VI.
“We are excited to increase our ownership in Pearlridge Center, a high-quality mall that we already know well and currently manage,” said Michael Glimcher, chairman and CEO of Glimcher, in a prepared statement. “With sales of nearly $500 per square foot and a dynamic growth profile, this strategic investment is consistent with our goal of enhancing the quality of our real estate portfolio.
Included in the acquisition price is Blackstone’s pro-rata share of the $175 million mortgage debt currently encumbering the property, which means the cash purchase price is approximately $149.4 million.
Macy’s, Sears, Toys “R” Us, Ross Dress For Less, Bed Bath & Beyond, Longs Drug Store and an 18-screen theater anchor the center.
The joint venture acquired the property in 2010 (see our story here) from Northwestern Mutual for $245 million. Glimcher’s purchase of Blackstone’s share is expected to close during the second quarter of 2012.
Glimcher’s share price on March 22 closed at $9.95, up from $8.28 a year earlier.
— Savannah Duncan