Glimcher Purchases Blackston’s Interest in Pearlridge Mall

by Adriana Pop, Associate Editor Glimcher Realty Trust is purchasing an 80 percent indirect ownership interest in Pearlridge Center, the second largest shopping mall in Hawaii. Glimcher is using a recent common stock offering, and possibly funds from its credit facility, to finance the purchase from affiliates of Blackstone Real Estate Partners VI. The purchase price will be about [...]

by Adriana Pop, Associate Editor

Glimcher Realty Trust is purchasing an 80 percent indirect ownership interest in Pearlridge Center, the second largest shopping mall in Hawaii.

Glimcher is using a recent common stock offering, and possibly funds from its credit facility, to finance the purchase from affiliates of Blackstone Real Estate Partners VI. The purchase price will be about $289.4 million, including Blackstone’s pro-rata share of the $175 million mortgage debt, the company said in a recent statement.

“We are excited to increase our ownership in Pearlridge Center, a high-quality mall that we already know well and currently manage,” stated Michael P. Glimcher, chairman of the Board and CEO. “With sales of nearly $500 per square foot and a dynamic growth profile, this strategic investment is consistent with our goal of enhancing the quality of our real estate portfolio,” he added.

Glimcher announced that it has completed a public offering of 23 million shares of common stock at a price of $9.90 per share, with net proceeds of approximately $218 million. The offering included 3,000,000 common shares issued and sold upon the exercise of the underwriters’ option to purchase additional stock.

In 2010, an affiliate of Glimcher and an affiliate of Blackstone acquired the Pearlridge Center for $245 million. Under the joint venture, Blackstone’s affiliate purchased 80 percent of the Aiea mall, while the Columbus, Ohio-based retail real estate investment trust acquired the remainder 20 percent.

Pearlridge Center features over 1.1 million square feet of national retailers, specialty shops, retail merchandising units and a movie theater. The property has in-line tenant sales of nearly $500 per square foot and an occupancy rate of more than 99 percent.