Archive for the ‘REITs’ Category
by David Bodamer January 9th, 2007
According to the Associated Press:
The Mills Corp. warned Tuesday that a heavy debt load could force the mall developer into bankruptcy if it is unable to follow through with its plans to sell all or part of the company.
The warning came in a Securities and Exchange Commission filing that also detailed the results of an internal audit showing accounting errors and possible executive misconduct.
Mills’ shares plunged more than 16 percent on the news.
Chevy Chase-based Mills said it may not have enough cash to continue operating beyond March 31 and that it would be forced to sell all or part of the company to pay off a $1 billion loan that is due on that date. It could be forced into bankruptcy, which would cause shareholders to “lose their entire investment,” the company wrote in the federal filing.
Related Topics: Development, Investment, News, REITs, Retail Real Estate, Trends |
by David Bodamer December 30th, 2006
Are things looking up for Mills Corp.?
The chief executive of The Mills Corp. assured shareholders Friday that there are no undisclosed financial problems looming as the mall developer prepares to file its long-delayed financial earnings reports early next year.
Mark Ordan said the process of restating Mills reports has been “stunningly complex,” but he provided few details about the reports and the reasons the real estate investment trust pushed back its expected filing dates several times this year. He said there were no issues beyond the previously disclosed accounting errors, which the company is trying to fix.
“You should not read any of my remarks to say that there is some smoking gun out there that we are hiding,” Ordan said at Mills’ annual meeting.
Related Topics: News, REITs, Retail Real Estate |
by David Bodamer December 22nd, 2006
It’s a race to the finish line in the holiday shopping season. There’s lots of reports of stores and malls operating on extended hours–some are opting to stay open 24 hours a day during the home stretch. It will be interesting to see how it all plays out as we begin to sift through the data next week.
In the mean time, here’s a few of the big headlines from around the industry for the past couple of days.
Related Topics: Development, Investment, News, REITs, Retail, Retail Real Estate, Trends |
by David Bodamer December 19th, 2006
Mercury Real Estate Advisors LLC, a unit of real estate investment management company Mercury Partners LLC, urged the sale of Feldman Mall Properties Inc. in a shareholder proposal Monday.
Mercury owns about 1.3 million of the real estate investment trust’s shares, nearly 10 percent of the company’s 13.1 million outstanding shares. In a proxy proposal dated Monday, the stockholder said a sale of the company would be in the “best interests of stockholders and should be pursued immediately.”
Story here.
Related Topics: Finance, Investment, News, REITs, Retail Real Estate |
by David Bodamer December 15th, 2006
Simon Property Group has agreed to give raises to 3,000 janitors.
“We want to ensure all our properties have labor peace. We want to make sure people are treated fairly,” said John Rulli, chief operating officer of operating properties for Simon.
Simon reached an agreement with the Service Employees International Union. Simon, like most mall owners, is not the direct employer of its janitors. That work is subcontracted out. So the cost for the higher salary will be passed on to contractors.
Update: The deal is much larger than the initial story indicates. Westfield has also reached an agreement with SEIU. Overall, about 5,000 workers at Simon and Westfield malls will be able to form a union, get raises and get health insurance.
Read the rest of this entry »
Related Topics: Management & Leasing, News, REITs, Retail Real Estate, Trends |
by David Bodamer December 13th, 2006
Related Topics: Development, International, Investment, News, REITs, Retail Real Estate |
by David Bodamer December 12th, 2006
Here’s a problem you don’t run into every day.
It seems that shifting soil is causing problem’s at Westcor’s FlatIron Crossing property in Boulder, Colo.
Floor-heaving of up to 6 inches, expensive repairs and difficulty with mall management about how to address the problems persuaded Italian restaurant Il Fornaio to close in October, said Jesse Witt, a lawyer who represented the restaurant in negotiations with the mall. Witt said the Corte Madera, Calif.-based chain wanted to remain in the location, but the ‘’soils problem” was the reason it closed.
It’s a similar case for Denver-based burrito chain Chipotle, which shutdown in August. Chipotle spokesman Chris Arnold said the restaurant left because the mall opted not to repair the building.
Related Topics: Development, News, Quirky, REITs, Retail Real Estate |
by David Bodamer December 6th, 2006
Vornado Realty Trust raised a quick $1 billion through an offering of 8.1 million shares priced after the close of trading yesterday. Vornado, fresh off agreeing to buy the Manhattan Mall for $689 million, says it is looking to make more buys, possibly spending up to $3 billion on properties or company buyouts.
If recent history is any guide, Vornado could have any number of deals up its sleeve. In the past 24 months its bought office and retail properties in one-off deals, but also has invested heavily in retailers, participating in the takeovers of Toys ‘R’ Us and Sears last year.
Related Topics: Investment, News, REITs, Retail Real Estate |
by David Bodamer December 6th, 2006
More tidbits gathered at the ICSC National Conference and Dealmaking.
- Is the end in sight for the The Mills Corp. saga? The company reached an agreement with Gazit-Globe Ltd., an Israeli-based outfit headed by former Equity One CEO Chaim Katzman, to nominate a slate of four nominees for election to Mills’ board at its annual meeting, which will be held December 29. The slate will include two new independent directors originally proposed by Gazit, Read the rest of this entry »
Related Topics: Conference Coverage, News, REITs, Retail Real Estate |
Malls Still Not Using Planters
by David Bodamer December 15th, 2006
On Monday night, a distraught teen attempted to commit suicide by driving his car into the Altamonte Mall in Florida. The car plowed through one of the mall’s entrances, went down a concourse and then tumbled through an atrium down to the mall’s lower level. You can see the surveillance tape here.
The incident illustrates that malls still aren’t adopting some simple, low-cost, low-tech security measures, such as the ones described in Retail Traffic’s September 2005 story about malls as terrorist targets.
According to one story:
That seems to indicate that the mall had a planter in front of its entrance, but not real security planters.
Read the rest of this entry »
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