Transactions
Aug. 13, 2002
Macerich Acquires Developer
Santa Monica's Macerich Co. has acquired a privately held real estate developer in a $1.5 billion deal, picking up 26 malls and shopping centers.
Santa Monica's Macerich Co. has acquired a privately held real estate developer in a $1.5 billion deal, picking up 26 malls and shopping centers.
O'Melveny & Myers advised Macerich, led by Los Angeles partners Fred McLane, Jack Hicks and Mark Easton. The target, Westcor Realty Limited Partnership, is a major player in the Phoenix real estate market.
The acquisition closed July 26.
"It had an M&A component, a real estate component, and a real estate tax component, which made it very complex and very interesting," McLane says.
Under the terms, Macerich assumed $733 million in Westcor debt. The company also is issuing $72 million in convertible preferred operating partnership units, which are instruments that can be exchanged for Macerich common stock. The balance was paid in cash.
The Macerich Co., a real estate investment trust, is listed on the New York Stock Exchange.
The largest mall acquired by Macerich is the 1.9 million square-foot Scottsdale Fashion Square. The merged company now owns interests in 55 malls and 21 shopping centers, totaling 57 million square feet.
"For our client, Macerich, it was very much a strategic transaction," McLane says. "It significantly increased their size."
"It strengthened their position in the West and enhanced their development capability," he adds.
Westcor was represented by Goodwin Procter of Boston, while Cleveland's Squire, Sanders & Dempsey represented Westcor's individual partners.
Toni Vranjes
For reprint rights or to order a copy of your photo:
Email
Jeremy_Ellis@dailyjournal.com
for prices.
Direct dial: 213-229-5424
Send a letter to the editor:
Email: letters@dailyjournal.com