Taubman Gives Up on the Piers
Oct 1, 2009 12:00 PM
Regional mall REIT Taubman Centers is opting to take a writedown and may relinquish control of the Pier Shops at Caesars in Atlantic City to its lender. In addition to potentially handing in the keys on the Pier Shops to its lender Centerline Capital Group, it is taking a writedown on Regency Square in Richmond, Va. The moves will result in a $161 to $169 million hit to its earnings in the third quarter. The Pier Shops are about 80 percent occupied. Taubman has a $135 million mortgage on the property. The Pier is not the only casino-related retail project that Taubman's involved it that has had issues. It recently pulled out of Macao Studio City-a major project slated to be built in China's gambling mecca, although it hasn't ruled out getting back involved with the project. It's also the retail developer for the mammoth MGM City Center project that flirted with bankruptcy earlier this year.
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