General Growth Properties Inc. (GGP) announced this week that it has refinanced four shopping malls representing $966 million of new mortgages.
The new fixed-rate mortgages have a weighted average term of 9.1 years and a weighted average interest rate of 4.63%, as compared to the 5.66% rate on the prior maturing loans. GGP says its pro-rata share of the nonrecourse mortgages totals $483 million. The four newly refinanced malls contain the following terms:
- Natick Mall in Natick, Mass. – $450 million at 4.60% due 2019;
- Galleria at Tyler in Riverside, Calif. – $200 million at 5.05% due 2023;
- First Colony Mall in Sugar Land, Texas – $185 million at 4.5% due 2019; and
- Northbrook Court in Northbrook, Ill. – $131 million at 4.25% due 2021.
The transactions conclude GGP's financing plan for the year, the company says. Year-to-date, GGP has completed nearly $3.9 billion ($3.1 billion at GGP's pro-rata share) of new property-level nonrecourse financings with a weighted average term of 9.9 years and an interest rate of 5.1%. These mortgages replace $3.2 billion ($2.5 billion at GGP's pro-rata share) that had a weighted average term of 2.4 years and an interest rate of 5.81%.