CARLSBAD — It is official.
Rouse Properties announced last week it closed a deal with Australian-based Westfield Corporation for $170 million to purchase the Westfield Carlsbad mall.
The company also announced it plans to rebrand the 1.1 million square-foot commercial center as The Shoppes at Carlsbad.
In addition, the New York-based Rouse Properties said it will complete a “comprehensive renovation,” including a complete interior makeover and adding a contemporary and engaging streetscape to accommodate high-volume restaurants.
“We couldn’t be more excited to join the Carlsbad community,” said Andrew Silberfein, president and CEO of Rouse Properties, in the release. “We see a tremendous opportunity to apply our entrepreneurial national platform to reposition the property. As we move forward with this process, we will work in close coordination with City officials to ensure we deliver a product and retail experience that is unique for the marketplace and that the families in the community can be proud of.”
Currently, the mall boasts 150 retail outlets and last year added a 12-screen movie theater and 24-Hour Fitness center.
The acquisition was funded through the issuance of $140 million of preferred operating partnership units to Westfield. These preferred equity units carry a 5 percent coupon and are redeemable by Rouse Properties after a three year lock-out date, or by Westfield after 10 years, in the form of cash or common stock based on 96 percent of the volume-weighted average price of the company’s shares over the 30 trading days prior to the date of redemption, or any combination at the option of Rouse Properties (subject to a tax protection period through December 2021).
According to the press release, Silberfein added, “This strategic acquisition will be a perfect fit to our dynamic and growing California portfolio. We will apply our proven operating platform to improve the overall asset quality and retailer offering as we have successfully done throughout the country.”
Rouse declined further comment on the acquisition.