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MILLS, SIMON END JOINT VENTURE IN DEAL PRAISED BY ANALYSTS

Arlington, Va.-based The Mills Corp. and Indianapolis-based Simon Property Group have ended a more than seven-year, sometimes contentious, relationship. Mills signed a definitive agreement last month to purchase Simon’s interests in five Mills properties in a deal valued at $430 million. The two joined forces in 1995 and worked together on Arizona Mills, Phoenix; Arundel Mills, Baltimore; Concord Mills, Charlotte, N.C.; Grapevine Mills, Dallas; and Ontario Mills, Los Angeles. Mills said it expects an unleveraged return of 9.1 percent during the next year. REIT analysts called the transaction a “win-win” for allowing Mills greater control over its properties while providing Simon a more than $100 million profit, giving it additional liquidity to fund the Rodamco North America deal, which closed last month. Moreover, with this transaction marking the first time that Mills assets have changed hands, analysts said it makes it easier to determine the worth of the company’s value megamall concept.

POSSIBLE N.J. ARENA DEAL FOR MILLS COULD BREAK MEADOWLANDS DEADLOCK

A proposed deal to bring the New Jersey Devils and New Jersey Nets sports franchises to Newark could open the door for The Mills Corp.’s long-stalled attempts to build near New York City. Under a proposal the company discussed with the state, Mills would deed the land it currently holds, the so-called Empire Tract on which it wanted to build Meadowlands Mills, back to New Jersey in return for the right to redevelop the present Continental Airlines Arena site. The company’s efforts to build Meadowlands Mills have long been delayed because the site lies on hundreds of acres of wetland, for which Mills has had difficulty getting building permits. Under the arena proposal, instead of a value megamall, Mills would build a high-end retail center, a sports entertainment center, a 300,000-square-foot convention center, 1.5 million square feet of office space and a 521-room hotel.

DEUTSCHE BANK CLOSES ON $440M PURCHASE OF RREEF

Deutsche Bank has closed on its $440 million acquisition of the holding company for RREEF, making it the largest adviser of combined property and real estate equity securities in the world. The Frankfurt, Germany-based bank bought RoPro U.S. Holding, the holding company for real estate investment manager RREEF, from four joint owners. Chicago-based RREEF, which has an estimated $16.2 billion in assets, will keep its name, local franchise and investment focus, and operate as a unit within DB Real Estate. The move gives DB Real Estate, the property investment management business of Deutsche Bank, control of more than $36 billion in assets.

WINN-DIXIE EXITING OKLAHOMA, TEXAS

Winn-Dixie Stores, Jacksonville, Fla., one of the 10 largest grocers in the United States, is exiting Oklahoma and Texas, where it operates 76 stores. The company said at press time that it was in final negotiations to sell the majority of the stores.