EX-99.1 2 0002.txt PRESS RELEASE CBL Completes Acquisition of 21 Malls Page 1 January 31, 2001 Contact: John Foy Vice Chairman and CFO (423) 855-0001 CBL & ASSOCIATES PROPERTIES COMPLETES ACQUISITION OF 21 MALLS CHATTANOOGA, Tenn. (Jan. 31, 2001) - CBL & Associates Properties, Inc. (NYSE:CBL) today announced it completed the acquisition of The Richard E. Jacobs Group's interests in 21 malls and two associated centers for total consideration of approximately $1.301 billion, including the acquisition of minority interests in certain properties. The purchase price is comprised of $124.8 million in cash including closing costs of approximately $12 million, $771.3 million in non-recourse mortgage debt, and the issuance of 12,556,425 special common units of CBL's operating partnership with a value of $32.25 per unit. The cash portion was funded from a new $212 million unsecured credit facility provided by a consortium of banks led by Wells Fargo. The acquired properties, which total approximately 19.2 million square feet, include five malls in Wisconsin, three each in North Carolina, Kentucky and South Carolina, two each in Michigan and Ohio, one each in Illinois, Tennessee and Texas and associated centers in both Ohio and Wisconsin. The Company acquired 100% interest in 16 of the malls and one of the associated centers and partial interests, ranging from 50% to 80%, in five of the malls and one of the associated centers. CBL is now the largest owner of malls and shopping centers in the Southeast and the third largest mall real estate investment trust in terms of GLA owned in the United States, having posted extraordinary growth in size and earnings since its formation as a privately owned company in 1978 with only one shopping center and its subsequent initial public offering in 1993. "This transaction clearly defines CBL as the leading mall owner in the Southeast and accelerates our previous expansion in the Midwest," stated Charles B. Lebovitz, chairman and chief executive officer. "With our knowledge of these markets and our dominant position in them, we believe this transaction will add significant value for the benefit of our shareholders. We are very excited about the opportunity to enhance the franchise value of these malls through our leasing and specialty leasing programs, aggressive marketing and property management, and renovation and redevelopment where appropriate, all of which we expect to result in stronger properties. CBL Completes Acquisition of 21 Malls Page 2 January 31, 2001 "Our entire organization has worked tirelessly over the last several months to ensure that the integration of these properties will be as seamless as possible from day one. These integration efforts, which include adding personnel in several areas of the company, have positioned us to take advantage of the many opportunities this acquisition creates. We have also enjoyed working with the Jacobs organization and have appreciated their cooperation throughout this transaction." CBL & Associates Properties, Inc. is a real estate investment trust that owns regional malls and community shopping centers, primarily in the Southeast and select markets in the Northeast and Midwest. With a total of 51 enclosed malls, the Company now has a portfolio of 158 properties in 26 states totaling 55.9 million square feet, including 2.1 million square feet of non-owned shopping centers managed for third parties. The Company has under construction five new projects totaling approximately 1.7 million square feet, including two malls, one community center and two mall expansions. In addition to its headquarters in Chattanooga, TN, CBL has a regional office in Boston (Waltham), MA. The Company can be found on the Internet at www.cblproperties.com. Information included herein contains "forward-looking statements" within the meaning of the federal securities laws. Such statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual events, financial and otherwise, may differ materially from the events and results discussed in the forward-looking statements. The reader is directed to the Company's various filings with the Securities and Exchange Commission, including without limitation the Company's Annual Report on Form 10-K and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" incorporated by reference therein, and the Company's current report on Form 8-K being filed in connections with the transaction described herein, for a discussion of such risks and uncertainties. The shopping centers acquired are:
--------------------------------------------------------------------------------------------------------------- Total Mall Store Percentage Mall (Market) GLA GLA Anchors Acquired ------------- --- --- ------- -------- --------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------- CherryVale Mall (Rockford) 714,000 300,000 Bergner's, Marshall Field, Sears 100% --------------------------------------------------------------------------------------------------------------- Kentucky Fayette Mall (Lexington) 1,096,000 298,000 Dillard's, JC Penney, Lazarus, Sears 100 --------------------------------------------------------------------------------------------------------------- Jefferson Mall (Louisville) 936,000 275,000 Dillard's, JC Penney, Lazarus, Sears 100 --------------------------------------------------------------------------------------------------------------- Kentucky Oaks (Paducah) 878,000 298,000 Dillard's(2), Elder-Beerman, 50(1) JC Penney, Sears, ShopKo --------------------------------------------------------------------------------------------------------------- Michigan Midland Mall (Midland) 514,000 196,000 Elder-Beerman, JC Penney, 100 Sears, Target --------------------------------------------------------------------------------------------------------------- Fashion Square Mall (Saginaw) 786,000 287,000 Hudson's, JC Penney, Sears 100 --------------------------------------------------------------------------------------------------------------- North Carolina Randolph Mall (Asheboro) 376,000 147,000 Belk, JC Penney, Sears 100 --------------------------------------------------------------------------------------------------------------- Cary Towne Center (Cary) 953,000 294,000 Hudson Belk, Dillard's, Hecht's, 80 JC Penney, Sears --------------------------------------------------------------------------------------------------------------- Hanes Mall (Winston-Salem) 1,556,000 548,000 Belk, Dillard's, Hecht's, 100 JC Penney, Sears --------------------------------------------------------------------------------------------------------------- Ohio Eastgate Mall (Cincinnati) 905,000 268,000 Dillard's, JC Penney, Kohl's, Sears 100 --------------------------------------------------------------------------------------------------------------- Eastgate Crossing (Cincinnati) 194,000 Border's, Circuit City, Kids 'R Us, 100 Kroger --------------------------------------------------------------------------------------------------------------- Towne Mall (Franklin) 521,000 152,000 Dillard's, Elder-Beerman, Sears 100 --------------------------------------------------------------------------------------------------------------- South Carolina Citadel Mall (Charleston) 1,068,000 294,000 Belk, Dillard's, Parisian, Sears 100 --------------------------------------------------------------------------------------------------------------- Columbia Mall (Columbia) 1,113,000 297,000 Dillard's, JC Penney, Rich's, Sears 79 --------------------------------------------------------------------------------------------------------------- Northwoods Mall (North Charleston) 833,000 312,000 Belk, Dillard's, JC Penney, Sears 100 --------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------- Tennessee Old Hickory Mall (Jackson) 555,000 159,000 Belk, Goldsmith's, JC Penney, Sears 100 --------------------------------------------------------------------------------------------------------------- Texas Parkdale Mall (Beaumont) 1,411,000 462,000 Dillard's (2), JC Penney, 100 Montgomery Ward, Sears --------------------------------------------------------------------------------------------------------------- Wisconsin East Towne Mall (Madison) 895,000 295,000 Boston Store, JC Penney, Sears, 65 Younkers --------------------------------------------------------------------------------------------------------------- West Towne Mall (Madison) 1,021,000 260,000 Boston Store, JC Penney, Sears, 65 Younkers --------------------------------------------------------------------------------------------------------------- West Towne Crossing (Madison) 447,000 Barnes & Noble, Best Buy, Cub 65 Foods, Ganders Mountain, Kohl's, Office Max, ShopKo --------------------------------------------------------------------------------------------------------------- Brookfield Square Mall (Milwaukee) 1,041,000 316,000 Boston Store, JC Penney, Sears 100 --------------------------------------------------------------------------------------------------------------- Regency Mall (Racine) 918,000 68,000 Boston Store, JC Penney, Sears, 100 Younkers --------------------------------------------------------------------------------------------------------------- Wausau Center (Wausau) 429,000 156,000 JC Penney, Sears, Younkers 100 --------------------------------------------------------------------------------------------------------------- (1) Managed by a third party