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Shopping Centers Today -> February 2003
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GHERMEZIANS SETTLE LAWSUIT OVER LOAN TO WEST EDMONTON
The owners of West Edmonton Mall and a Canadian financial institution have settled a lawsuit, opening the way for a substantial expansion of the world’s largest shopping center.
Details of the private settlement between the Ghermezian family, which owns the 5.3 million-square-foot mall, and the Alberta (Canada) Treasury Branches (ATB), the province-owned financial institution that filed the suit, were not released.
“We are satisfied that this matter has been resolved and welcome the continued financial support of ATB,” said Eskander Ghermezian, CEO of West Edmonton Mall Property, in a prepared statement. “We remain committed to further developing West Edmonton Mall as Alberta’s leading retail, entertainment and tourist attraction.”
ATB had alleged that the company obtained a 30-year, C$65 million ($41 million), zero-interest loan to refinance the mall in 1994 by bribing an ATB official. The lawsuit threatened to stymie the mall’s expansion, with ATB requesting that the court grant it possession of the property.
In November the Ghermezians and others agreed to pay C$7 million to settle part of a lawsuit over the bankruptcy of Triple Five Corp., the mall’s holding company, according to The Edmonton Journal.
The Ghermezians, who opened the mall in 1981, plan to expand the retail space there by about 322,900 square feet. They also intend to build an 8,000-seat facility for sports, trade shows and conventions, a 12-story office building and a 600-unit apartment building. The center already contains more than 800 stores, 25 sit-down restaurants, a casino, hotels and an amusement park.
Edmonton city officials in November gave the Ghermezians the go-ahead for their expansion plans (SCT, January 2003).
Edmonton-based Triple Five also developed the largest mall in the United States — Mall of America, Bloomington, Minn. — with Simon Property Group and remains a part owner of the center.
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