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Chelsea Property Group, Inc. (ticker: CPG, exchange: New York Stock Exchange) News Release - 21-Sep-2004
Chelsea Acquires Carlsbad Company Stores
ROSELAND, N.J.--(BUSINESS WIRE)--Sept. 21, 2004--Chelsea Property Group, Inc. (NYSE: CPG) announced today that pursuant to a purchase option agreement granted prior to development, it completed the acquisition of Carlsbad Company Stores, located in Carlsbad, California, from a privately held company. The all-cash purchase price of $102.9 million was primarily financed with proceeds from a $100 million bridge loan at LIBOR plus 0.85% that is due upon the Company's merger with Simon Property Group, Inc. (NYSE: SPG), which is expected to close during the fourth quarter. The first-year unlevered return on the purchase is estimated at approximately 10.5%.
Opened in 1997, Carlsbad is a 289,000 square-foot, 90-store outlet center located 30 miles north of downtown San Diego off Interstate 5. More than 3.5 million people, with an average household income of approximately $70,000, live within a 45-mile radius. The outlet center's tenant sales for the 12 months ending June 2004 averaged more than $570 per square foot with occupancy of 100%. Tenants include Polo Ralph Lauren, Barneys New York, Banana Republic, Crate & Barrel, GAP, and Tommy Hilfiger.
Chelsea Property Group, Inc. is a fully integrated, self-administered and self-managed real estate investment trust (REIT) that wholly or partially owns 60 Premium Outlet and other shopping centers - containing approximately 16.9 million square feet of gross leasable area - in 31 states and Japan. The Company's leading properties include Woodbury Common Premium Outlets, near New York City; Orlando Premium Outlets, in Orlando, Florida; Wrentham Village Premium Outlets, near Boston; and Gotemba Premium Outlets, near Tokyo. See www.cpgi.com for more information.
Statements in this news release that are not strictly historical are "forward-looking" statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although Chelsea Property Group believes the expectations reflected in such statements are based on reasonable assumptions; it can give no assurance that its expectations will be attained. Forward-looking statements involve known and unknown risks that may cause actual results to differ materially from expected results. Risk factors include, without limitation: credit risk; the Company's ability to lease its properties; retail, real estate and economic conditions; competition; access to capital; and other risks detailed from time to time in Chelsea Property Group's reports to the Securities and Exchange Commission. The Company accepts no responsibility for updating forward-looking statements.
CONTACT: Chelsea Property Group, Inc.
Leslie T. Chao/Michael J. Clarke, 973-228-6111
SOURCE: Chelsea Property Group, Inc.
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