Cedar Shopping Centers to acquire up to seven centers for $200 million
Port Washington, N.Y. Cedar Shopping Centers said Monday that, in a joint venture with RioCan Real Estate Investment Trust of Toronto, Canada, it has agreed to acquire five shopping centers from Pennsylvania Real Estate Investment Trust for approximately $134 million.
A sixth property is under consideration, pending certain conditions and terms of an existing partnership between a third party joint-venture partner and PREIT.
The properties will be purchased by the existing Cedar (20%) and RioCan (80%) joint venture which has acquired a number of properties to date.
Cedar has also agreed to purchase from PREIT a seventh property, which will be owned by Cedar and RioCan on a 50-50 basis. Closing is subject to reaching agreement with a third-party joint venture partner of PREIT.
The aggregate purchase price for all seven properties would be approximately $200 million.
Three of the initial five properties to be acquired by the Cedar/RioCan joint venture are located in Pennsylvania, one in New Jersey, and one in Virginia.
The remaining two properties potentially to be acquired are also in Pennsylvania.
Four of the properties are anchored or shadow-anchored by supermarkets or a “club” store. The aggregate owned-GLA of the initial five properties is approximately 936,000 sq. ft.; for the seven properties the total owned-GLA is approximately 1.8 million sq. ft.
The initial five properties are Monroe Marketplace in Selinsgrove, Pa.; Creekview Shopping Center in Warrington, Pa.; Pitney Road Plaza in Lancaster, Pa.; Sunrise Plaza in Forked River, N.J.; and New River Valley Center in Christiansburg, Va.
The remaining two properties under consideration are Red Rose Commons in Lancaster, Pa., and The Whitehall Mall in Allentown, Pa.
Sears Holdings brings back Christmas Club card
HOFFMAN ESTATES, Ill. Sears Holdings announced that it is bringing back its Christmas Club card for Sears and Kmart shoppers.
“Sixty-seven percent of Americans feel guilty that they aren’t saving enough money, so we want to make it as easy as possible for them to budget and save for the upcoming 2010 holiday season,” said Susan Ehrlich, president of financial services for Sears Holdings.
When activated between now and Oct. 31, Christmas Club card users will earn a 3% reward — up to a maximum $100 — based upon the value they have on their cards on Nov. 15. The reward will be added to customers’ Christmas Club cards by Nov. 24. To activate cards or add additional value, customers can visit any Sears or Kmart store location, or online at www.sears.com/christmasclub or www.kmart.com/christmasclub.
Customers can start their Christmas Club cards with as little as $5, and can add value as often as they want at any one of Sears Holdings’ approximately 3,900 full-line and specialty retail stores, or online, the company reported.
Blockbuster loss widens, reaches new forebearance agreement
DALLAS Blockbuster reported that total revenues for the second quarter of 2010 were $788 million, compared with total revenues of $982 million for the same period one year ago. Net loss for the second quarter of 2010 was $69 million, or 32 cents per share, compared with a net loss of $37 million, or 21 cents per share, in the second quarter of 2009.
The company announced that it has also reached a new forbearance agreement with noteholders who have, collectively, represented that they hold approximately 70% of the company’s 11.75% senior secured notes due 2014. The executing noteholders have agreed to forbear from exercising certain rights and remedies they may have under the indenture and related collateral documents arising from not receiving payments due under the senior secured notes on July 1. The forbearance period, under the new forbearance agreement, will expire on Sept. 30, unless earlier terminated in accordance with its terms, the company reported. The forbearance period may be extended upon written agreement by the parties.
Jim Keyes, chairman and chief executive officer of Blockbuster, stated, “We appreciate the continued cooperation of our senior secured noteholders and the other parties involved in our ongoing recapitalization efforts. While making progress, this extension allows additional time to complete these complex, multiparty negotiations. To take advantage of its unique multi-channel model and revitalize its global brand, Blockbuster will require an improved capital structure. Our objective is to complete a recapitalization as soon as possible so we are better positioned to focus our attention and resources on the strategic opportunities to continue our business transformation.”