The Cadillac Fairview Corporation Limited

The Cadillac Fairview Corporation Limited

July 30, 2009 17:52 ET

The Cadillac Fairview Corporation Ltd. and Macerich Create New Joint Venture

Cadillac Fairview acquires 49% interest in dominant New York City Asset

TORONTO, ONTARIO--(Marketwire - July 30, 2009) -

Attention: Business/real estate/newsdesk editors and reporters

The Cadillac Fairview Corporation Limited and long-time partner, The Macerich Partnership, L.P., the operating partnership of Macerich® (NYSE:MAC) today announced a joint venture in Macerich's dominant New York City asset, Queens Center.

Under the terms of the deal, an affiliate of Cadillac Fairview acquires 49% interest in the asset and Macerich receives approximately $150 million in net cash.

Queens Center is a 966,499-square-foot urban retail development anchoring Queens, N.Y., one of the most concentrated and dynamic markets in New York City. The property produces annual mall sales (spaces 10,000 square feet or less) of $876 per square foot as of year-end 2008, making it the top-performing asset in Macerich's portfolio of high-quality retail real estate in the country's most powerful markets. Queens Center leads the industry as one of the most productive regional shopping centers in the United States.

Queens Center is anchored by highly successful JCPenney and Macy's department stores and features approximately 165 specialty retailers and restaurants. Year-end 2008 occupancy was 97.5%.

"This is a very powerful partnership and, particularly given the challenging economic environment, Cadillac Fairview and Macerich had an opportunity to leverage an already-lucrative partnership that will deliver value over time," said Andrea Stephen, Executive Vice President of Investments for Cadillac Fairview. "Very few companies have the ability to accomplish a deal of this nature in this environment, and this is exactly why the Macerich/Cadillac Fairview partnership model is a competitive strength."

This is the eighth regional shopping center to be joint ventured for the two entities: Cadillac Fairview and Macerich co-own seven of the country's top-performing regional shopping centers in California and the Pacific Northwest, including Lakewood Center and Los Cerritos Center in greater Los Angeles and Washington Square in Portland, Ore. The longstanding partnership began in 1999.

"Strategic joint ventures are at the core of Macerich's business model and this deal makes it possible for Macerich and Cadillac Fairview to build on a partnership that spans more than a decade and has delivered strong results, both from a financial and a real estate perspective," said Macerich President Edward C. Coppola. "Queens Center is the first in a series of transactions in the execution of our joint venture strategy, through which we expect to raise $500 million in equity."

Like the other assets in the long-time partnership, Macerich will continue to manage the property, with the added value of Cadillac Fairview's expertise as an investor and partner in best-in-class real estate assets.

"This acquisition gives us a once-in-a-generation opportunity to enter New York, one of the world's most valuable markets at what is arguably the best retail site," commented Peter Sharpe, Cadillac Fairview's Chief Executive Officer. "That the asset is a Macerich property adds even greater value - we know from experience that this is a partnership that delivers results."

About Cadillac Fairview

The Cadillac Fairview Corporation Limited is one of North America's largest investors, owners and managers of commercial real estate. For more than 50 years Cadillac Fairview has been leading the way in commercial real estate with innovative design, development and management. Cadillac Fairview focuses on developing and managing high quality office properties and regional shopping centres in Canada and the United States, as well as international investments in real estate companies and investment funds. With a portfolio valued at more than $16 billion and nearly 50 million square feet of leasable space, Cadillac Fairview and its affiliates own and manage 84 properties across North America, including some of Canada's landmark developments, such as Toronto-Dominion Centre, Toronto Eaton Centre, Pacific Centre and Chinook Centre. Cadillac Fairview is wholly-owned by the Ontario Teachers' Pension Plan, which invests to secure the retirement income of 284,000 active and retired teachers in Ontario. For details, please visit

About Macerich

Macerich is a fully integrated self-managed and self-administered real estate investment trust, which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States. The company is the sole general partner and owns an 87% ownership interest in The Macerich Partnership, L.P. Macerich now owns approximately 76 million square feet of gross leasable area consisting primarily of interests in 72 regional malls. Additional information about Macerich can be obtained from the company's website at

NOTE: To view the photos of the Queens Center, please visit the following links -

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