(By Balaseshan) Macerich Co. (NYSE: MAC) has agreed to buy Green Acres Mall from Vornado Realty Trust (NYSE: VNO) for $500 million and Kings Plaza Mall from Alexander's Inc. (NYSE: ALX) for $751 million.
Macerich expects to place secured debt on the property at the closing of the transaction. The balance of the purchase price will be funded from cash on hand, or from Macerich's line of credit.
The net proceeds from the sale of Kings Plaza for Alexander's will be about $481 million after repaying the existing loan and closing costs. Net proceeds from the sale of Green Acres for Vornado will be about $185 million after repaying the existing loan and closing costs.
Alexander's will realize a financial statement gain of about $602 million and a tax gain of about $624 million, which is expected to be paid out to stockholders as a special long-term capital gain dividend.
Vornado will realize a financial statement gain of about $195 million and a tax gain of about $304 million, which is expected to be deferred as part of a like-kind exchange.
Further, from the sale of the Kings Plaza Mall, Brooklyn, New York, Vornado will realize a financial statement gain of about $181 million and a tax gain of about $202 million, which is expected to be paid out to shareholders as a special long-term capital gain dividend.
Kings Plaza is a 1.2 million square foot super regional mall. Kings Plaza is anchored by Macy's, Lowe's and Sears and is the only enclosed super regional mall in Brooklyn, New York.
Green Acres Mall is a 1.8 million square foot super regional mall located in Valley Stream, New York. Green Acres is anchored by Macy's, Macy's Men's, Sears, Kohl's, jcpenney, BJ's Wholesale Club and Walmart.
The purchase of Kings Plaza is planned to close in late 2012, while the Green Acres transaction is expected to close in the first quarter of 2013.
MAC is trading down 2.07% at $57.69 on Monday, while ALX trades 5.81% higher at $444. VNO trades down 0.11% at $81.21.