Taubman Centers has sold land it owns in Syosset, New York and its interest in Arizona Mills to Simon Property Group.
The consideration, excluding transaction costs, consisted of USD60m of cash and 555,150 partnership units in Simon Property Group Limited Partnership.
The number of partnership units issued was determined based on a value of USD154.91 per unit.
As part of the sale, Taubman will be relieved of its USD84m share of the current USD167m mortgage loan on Arizona Mills, bringing the transaction's total value to USD230m.
"Despite our best efforts and continuing enthusiasm for the opportunity, it became apparent that we were not going to be able to move forward anytime soon in Syosset with development of The Mall at Oyster Bay," says Robert S Taubman, chairman, president, and chief executive officer of Taubman Centers. "Given the excellent progress we are making with a number of other properties in our development pipeline, we are pleased to be able to redirect our resources at this time."
The Long Island property represents 39 acres of land and site improvements at the northeast corner of the Long Island Expressway (I-495) and Robbins Lane.
Arizona Mills is located at the intersection of I-10 and U.S. 60 and is the largest outlet and value retail shopping destination in Arizona. The centre, which opened in 1997, was developed in partnership by Taubman, The Mills Corporation, and Simon. Upon closing, Simon will own 100 per cent of Arizona Mills.