CBL & Associates Properties, Inc. (CBL) recently announced the acquisition of a 75% interest in The Outlet Shoppes at El Paso in El Paso, Texas, and a 50% interest in The Outlet Shoppes at Gettysburg in Gettysburg, Pennsylvania, for a total consideration of $108.7 million. The purchase price included $38.2 million in cash and the assumption of $70.5 million in debt. Horizon Group Properties is currently managing both these properties.
The Outlet Shoppes at El Paso is placed between El Paso and Las Cruces, New Mexico and attracts over 2.3 million residents of Juarez, Mexico. The 378,000 square feet outlet center was 99.6% occupied as of December 31, 2011.
The Outlet Shoppes at Gettysburg is located along Highway 15 near the renowned Gettysburg National Military Park. The 250,000 square feet outlet center was 98.2% occupied as of December 31, 2011.
These acquisitions are expected to enhance the quality of CBL’s portfolio and further strengthen its presence in the outlet center industry. The company is already involved in a successful partnership with Horizon in two other outlet centers. These include the Outlet Shoppes in Oklahoma City, and the Outlet Shoppes in Atlanta, which is under development and is expected to open in summer 2013. The company looks forward to sustaining its success through expansions and further acquisitions.
Headquartered in Chattanooga, Tennessee CBL is one of the largest and most active owners and developers of malls and shopping centers in the United States. CBL owns and manages 157 properties, including 89 regional malls/open-air centers.
CBL currently retains a Zacks #2 Rank, which translates into a short-term Buy rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Simon Property Group Inc (SPG) also holds a Zacks #2 RankRead the Full Research Report on SPG
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