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General Growth-Rouse deal on faster track

General Growth Properties expects to close its merger with The Rouse Co. on Nov. 12, earlier than the late-December closing that analysts at Morgan Stanley had predicted. The earlier closing could raise General Growth’s funds from operation for 2004 by about 4.4 percent, or 12 cents per share, because the newly acquired properties can begin generating net operating income, the investment bank says.

Malaysia gets its first retail REIT

YTL Corp., a Kuala Lumpur-based property developer, is set to form the country’s first REIT and transfer into it two shopping centers valued at M$1.5 billion ($395 million). This REIT will also own retail space bought from Singapore-based C.K. Tang, which operates department stores under the Tangs banner, and a Marriott hotel, according to Bloomberg. The Malaysian government paved the way for REITs by passing the requisite tax laws last month.

Westfield, rival to buy London retail developer

Westfield Group has joined with Multiplex, a fellow Australian retail real estate developer, and two other investors to buy Duelguide, the parent company of London-based retail developer Chelsfield. At press time submission of the joint bid of £585 million ($1 billion) was set for mid-October. Some had predicted a bidding war for Duelguide between Westfield and Multiplex. Not only are the two firms competitors in the Australian shopping center development market, but Multiplex already holds a stake in Duelguide. Chelsfield, which specializes in revitalizing urban neighborhoods with its shopping center developments, is currently involved in two large urban redevelopment projects in west London, called White City and Paddington Basin. It also owns Murray Hill, a retail-entertainment center outside Birmingham, England.

Colonial Properties puts malls on block

Colonial Properties Trust is selling six malls in the Southeast and Texas in a bid to lower its relative exposure to retail assets. The company also owns multifamily, office and retail assets, mainly in the Southeast. Colonial hired New York City-based Granite Partners to market the portfolio, which averages $288 in sales per square foot. The average quality of the portfolio is C+/B-, estimates Morgan Stanley equity analyst Matthew Ostrower, who values the portfolio at between $290 million and $330 million. The properties are Colonial Mall Burlington (N.C.); Colonial Mall Gadsden (Ala.); Colonial Mall Macon (Ga.); Colonial Mall Mayberry, Mount Airy, N.C.; Colonial Mall Staunton (Va.); and Colonial Mall Temple (Texas).

Fresh spin on department store in Dallas

Dallas-based entrepreneur Ort Varona is planning the region’s first boutique department store. The 20,000-square-foot, two-level concept, Lift, will sell contemporary art and the latest fashions, furniture and technology. Personal shopping services, wholesale showrooms, a personal care salon, and a restaurant and lounge with views of downtown Dallas will be among the store’s amenities. Lift is smaller than the average department store, which typically operates about 115,000 square feet of space. Its merchandise mix is similarly pared down, doing away with such traditional department store offerings as cosmetics and luggage. Varona operates boutiques in Dallas under the Octane and Premium 93 brands. Lift will be part of the retail portion of a Hillwood Capital project called Victory, a 72-acre, mixed-use development. Victory will feature 235,000 square feet of retail space, 25,000 square feet of offices and 600 residential units. Hillwood is building Victory’s second phase, which will include retail, nightclubs, offices and dining. Lift and Victory’s second phase will open in spring 2006.

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