Glimcher completes major sale
Sep 3, 2002 12:00 PM, — by Ben Johnson, Editor-in-Chief
Glimcher Realty Trust (NYSE: GRT), has sold a portfolio of 13 properties for about $106 million.
The buyer is a group of private investors. The purchase price included $76.8 million in cash and the assumption of four existing mortgages with an outstanding balance of $29.2 million. The cash proceeds were used to repay a $50 million mortgage that was scheduled to mature on October 26, 2002, and to pay down $19.2 million on the Company's floating rate bridge loan facility. The balance of the funds after payment of closing related costs were used to reduce the outstanding borrowings on the Company's line of credit.
The properties are located in the Midwest and Southeast and total approximately 2.1 million sq. ft. of gross leasable area. Eleven of the properties are community centers and two are single-tenant assets.
"This $106 million sale is a major step forward in the execution of our plan to lower the company's leverage and focus on regional mall assets," said president Michael P. Glimcher. "The closing of this transaction has reduced our debt-to-market-capitalization ratio below 60% as of August 31 and completes our refinancing requirements for 2002."
During 2002 the Company has closed on the sale of 17 community centers and three single tenant assets for a total of $171.5 million. As of August 31, the Company retains ownership or has a joint venture interest in a total of 85 properties aggregating 27.9 million sq. ft. of gross leasable area ("GLA"). The Company's 23 regional malls represent 19.7 million sq. ft. of GLA which is approximately 71% of the total portfolio.
