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IN BRIEF

Supremes divided on Wetlands

In a 5-4 June ruling on a case some said would determine the fate of the 1972 Clean Water Act, the Supreme Court failed to provide clear guidance for developers about what constitutes a federally regulated wetland. The court remanded the case, involving two separate lawsuits brought by property owners, back to the appeals court. One party in the case, Michigan property owner John Rapanos, was accused of filling in a portion of a wetland without a permit, while another, Keith Carabell, had sought permission to build a parcel on regulated lands.

Though the ruling gave no clear-cut victory to either environmentalists or developers, it does offer the Army Corps of Engineers the chance to define its parameters for wetlands. “My hope is that the Army Corps of Engineers will see the light and be less aggressive in interpreting the Clean Water Act,” said Kent Jeffreys, ICSC’s legislative counsel. “If the Corps does go this route, it’s good news for ICSC members, because it will streamline their process and save money and time.” Last year ICSC organized a coalition of real estate associations and filed an amicus curiae brief for the case. Observers say the ruling is not the last word on the issue by any means.

But Justice Anthony M. Kennedy wrote for the majority that a wetland site must have a “significant nexus” to a navigable body of water. Some now wait to see whether lower courts and federal agencies will devise the answers to these questions.

Cadillac buys into Brazilian malls

Canada’s Cadillac Fairview bought a 46 percent stake in Brazil’s largest mall-owner firm, Multiplan Empreendimentos Imobiliários, in a continuation of its overseas investment strategy.

Multiplan owns a substantial stake in nine shopping centers and manages 14. Cadillac Fairview did not disclose the price, but media reports value Multiplan at over $1 billion.

This deal is part of Cadillac Fairview’s strategy “to diversify the portfolio through international expansion,” according to a company press release. Only 9 percent of the firm’s $13 billion in assets are currently invested outside North America, the release says. “Brazil is an exciting and emerging market and has many attributes which make it attractive for investment,” said L. Peter Sharpe, Cadillac Fairview’s president and CEO. “As the largest owner-managers of retail real estate in Brazil, Multiplan will become the platform for Cadillac Fairview’s future investments in South America.”

Rio de Janeiro-based Multiplan, which was founded by its president, José Isaac Peres, owns Brazil’s best malls, sources say. “This venture will enhance our business and facilitate our growth plans in the Brazilian market,” said Peres in a press release.

Cadillac Fairview is the real estate arm of the Ontario Teachers’ Pension Plan. Sharpe says that he would like to boost the firm’s ex-North America holdings to about 20 percent of the portfolio over the next five years. He says Cadillac Fairview is looking to invest in Brazil, Mexico and South Africa, countries he described as being a bit below the radar in terms of foreign investment. “Brazil’s economy and Multiplan have the potential for substantial growth,” he told SCT.

French center almost finished

London-based Henderson Global Investors is completing the fourth and final phase on one of Europe’s first outlet centers, Troyes Outlet Centre, located about 90 minutes outside Paris. This phase, scheduled to open in the spring of next year, will add at least 25 so-far-unidentified retailers to the center’s roster of 89 tenants and expands the project to over 310,000 square feet. London-based McArthur Glen will manage the center. Troyes Outlet Centre opened in 1995. Tenants include Armani, Nike and Versace.