Party City, VisionWorks to open at Upland Square
Conshohocken, Pa. — Plymouth Meeting, Pa.-based Fameco Real Estate said that Party City and VisionWorks have signed leases at Upland Square, located in West Pottsgrove, Pa.
Party City has signed a lease for 9,000 sq. ft. and VisionWorks has signed a lease for 3,825 sq. ft. These retailers will join anchors Target, Giant, Best Buy, LA Fitness, TJ Maxx and Bed, Bath & Beyond at the 600,000-sq.-ft. power center.
Target to sell credit card business
MINNEAPOLIS — Target will no longer have to worry about the impact of its consumer credit card portfolio on its financial performance, now that it has agreed to sell the business to TDBank Group.
Target’s credit card business is valued at around $5.9 billion, and TD has agreed to underwrite, fund and own future Target Credit Card and Target Visa receivables in the United States. Under the program agreement, TD will control risk management policies and regulatory compliance and Target will continue to perform account servicing functions. This transaction, which is subject to regulatory approval and other customary closing conditions, is expected to close in the first half of calendar 2013.
"Target is very pleased to have reached this agreement with TD which is the result of extensive efforts by teams at both companies," said Gregg Steinhafel, chairman, president and CEO of Target. "This transaction achieves all of Target’s strategic and financial goals for a portfolio sale. We look forward to working with this premier global financial institution to continue Target’s long history of innovation in our guest-focused financial services strategy."
"Our agreement with Target will significantly expand our presence in the North American credit card business and will establish TD as a key player in this space," said Ed Clark, group president and CEO of TD Bank Group. "We’re excited to be working with Target’s strong team and leading retail brand. This asset acquisition aligns perfectly with our strategy, fits our risk profile and is a great complement to our high-growth credit card business."
The agreement allows Target to maintain the current deep integration between its financial services operations and its retail operations. The agreement does not have any impact on Target’s 5% REDcard Rewards program. Target team members will continue to provide all servicing for Target Credit Card and Target Visa accounts. The portfolio sale and program agreement are designed to have minimal impact on Target’s current cardholders, guests and the Target team members who support financial products and services, the company said.
Beginning with the fiscal quarter in which the transaction closes, Target will no longer report its U.S. credit card segment. For its most recent quarter, the retailer reported that average receivables for this segment decreased 5% to $5.9 billion in 2012 from $6.2 billion in 2011. Second quarter 2012 portfolio spread to LIBOR was $140 million, or 9.5%, compared with $186 million, or 12%, in 2011. Performance in second quarter 2012 reflected a $30 million reduction in the allowance for doubtful accounts, compared with an $85 million reduction in second quarter 2011.
Macerich to acquire Kings Plaza and Green Acres Mall
Santa Monica, Calif. — The Macerich Co. announced on Monday plans to acquire Kings Plaza, located in Brooklyn, N.Y., and Green Acres Mall, located in Valley Stream, N.Y., on the border of New York City and Nassau County.
Kings Plaza is being acquired from a subsidiary of Alexander’s for $751 million, with a closing date set for late 2012. Green Acres is being acquired from a subsidiary of Vornado Realty Trust for $500 million, with a first quarter 2013 closing date.
Kings Plaza is a 1.2 million-sq.-ft. super regional mall anchored by Macy’s, Lowe’s and Sears. Green Acres Mall is a 1.8 million-sq.-ft. super regional mall anchored by Macy’s, Macy’s Men’s, Sears, Kohl’s, J.C. Penney, BJ’s Wholesale Club and Walmart.
"These transactions are consistent with our investment strategy of acquiring assets in the major markets where we have our best assets and selling non-core assets and recycling capital,” said Arthur Coppola, chairman and CEO, Macerich. “This allows us to build on our New York portfolio and will be an excellent complement to Queens Center.”