Message #13 From:
NewsBot Date: March 27, 2007 12:59:00 PM
REG News Regency Centers Finalizes Open-End Retail Community Center Fund
JACKSONVILLE, Fla.--(BUSINESS WIRE)--Regency Centers Corporation (NYSE:REG)announced today that it finalized the initial capital raise of Regency Retail Partners, LP, an open-end, infinite-life fund (the Fund) with an additional $232 million of capital commitments, bringing total equity raised to $564 million, including Regency's contribution of $113 million. Regency’s ownership in the Fund is 20%. The Fund will primarily acquire, at fair market value, Regency-developed large format community centers upon stabilization. The Fund is expected to have a total capitalization of approximately $1.4 billion when fully invested with approximately 60 percent leverage. Regency anticipates that the $564 million in capital commitments will provide sufficient capital for Regency to fund its community shopping center development program for the next three years.
At the second closing, Phases I and II of Vista Village were contributed into the Fund at a purchase price of $61 million. Vista Village is a 184,000 square foot center anchored by Krikorian Theaters, Staples, Sprouts Market and Linens ‘N Things. The center is 100% leased.
The Fund will have the exclusive right to acquire all Regency-developed large format community centers upon stabilization that meet the Fund's investment criteria. Regency will act as the general partner of the Fund and will receive asset management, property management and leasing fees consistent with its other institutional partnerships and will also have the potential for incentive performance participation.
M3 Capital Partners LLC and Eastdil Secured (securities products offered through Wells Fargo Securities, LLC – member NASD/SIPC) acted as financial advisors for Regency with respect to the Fund. King & Spalding LLP acted as legal counsel to Regency.
Regency is the leading national owner, operator, and developer of grocery-anchored and community shopping centers. At December 31, 2006, the Company owned 405 retail properties, including those held in joint ventures. Including tenant-owned square footage, the portfolio encompassed 53.5 million square feet located in top markets throughout the United States. Since 2000 Regency has developed 173 shopping centers, including those currently in-process, representing an investment at completion of approximately $2.7 billion. Operating as a fully integrated real estate company, Regency is a qualified real estate investment trust that is self-administered and self-managed.
Forward-looking statements involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements. Please refer to the documents filed by Regency Centers Corporation with the SEC, specifically the most recent reports on forms 10K and 10Q, which identify important risk factors which could cause actual results to differ from those contained in the forward-looking statements. The securities discussed herein have not been registered under the Securities Act of 1933 or the securities laws of any state and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and any applicable state securities laws. This announcement does not constitute an offer to sell or the solicitation of an offer to buy the securities discussed herein.
