HOUSTON, March 24 /PRNewswire-FirstCall/ -- Weingarten Realty Investors (NYSE:WRI) and AEW Capital Management (AEW), on behalf of a major institutional client, announced a new joint venture which recapitalizes a WRI portfolio of thirteen high-volume supermarket-anchored shopping centers, one regional power center and four neighborhood retail centers totaling 2.1 million square feet. The properties are located in Texas, including fifteen in Houston and one each in Galveston, San Antonio and Amarillo. The centers are leased to a diverse mix of strong national and regional retailers including: -- Supermarkets -- Kroger, HEB, Fiesta, Sellers Brothers and Foodarama
-- Apparel -- TJ Maxx, Ross, Bealls, Palais Royal and CitiTrends
-- Banks -- JP Morgan Chase, Wachovia, Citi Financial, Washington Mutual
and Amegy
-- Restaurants -- Bennigan's, McDonald's, Burger King, Jack in the Box and
Luby's
-- Other -- CVS, AutoZone, Firestone, Hobby Lobby, Staples, Family Dollar
and Anna's Linens
The supermarkets in these centers average sales of more than $500 per square foot and the eighteen properties are more than 95% leased. The joint venture acquiring the centers will be leveraged 65% and is 15% owned by WRI and 85% by AEW's institutional client. WRI will be responsible for the ongoing management and leasing of the properties.
Stanford Alexander, Chairman of WRI stated, "We are very pleased to add another strategic partnership with AEW. This new joint venture further diversifies our sources of capital while leveraging our operational expertise through the ongoing management and leasing of the properties. Weingarten Realty will receive more than $214 million in cash proceeds while maintaining a significant ownership stake. Additional benefits include property management, leasing, and asset management fees as well as a performance enhancement as we exceed certain hurdles." "This investment fulfills our client's objective of acquiring a portfolio of high quality shopping centers in strong markets poised for revenue growth," said Dan Bradley, Director and Portfolio Manager at AEW. "This is AEW's third joint venture with Weingarten on behalf of three different institutional clients and we are very pleased with our ongoing relationship." The Northwestern Mutual Life Insurance Company provided financing for the venture and Eastdil Secured represented WRI's interest in structuring the venture.
As one of the largest real estate investment trusts listed on the New York Stock Exchange, Weingarten Realty (NYSE:WRI), formed in 1948, is celebrating its 60th anniversary as a commercial real estate owner, manager and developer. Focused on delivering solid returns to shareholders, Weingarten is actively developing, acquiring, and intensively managing properties in 23 states that span the United States from coast-to-coast. The Company's portfolio of 415 properties includes 335 neighborhood and community shopping centers and 80 industrial properties. Including tenant-owned square footage, the Company's portfolio currently totals more than 72 million square feet under management. Weingarten has one of the most diversified tenant bases of any major REIT in its sector, with the largest of its 5,700 tenants comprising less than 3% of its rental revenues. To learn more about the Company's operations and growth strategies, please visit http://www.weingarten.com/.
Founded in 1981, AEW Capital Management, L.P. (AEW) provides real estate investment management services to investors worldwide. Currently, AEW and its affiliates manage over $47 billion of gross real estate assets and securities on behalf of many of the world's leading institutional and private investors (as of December 31, 2007). The firm actively manages portfolios in both the public and private property markets and across the risk/return spectrum. AEW and its affiliates have offices in Boston, Los Angeles, London, Paris and Singapore, as well as additional offices in eight other European cities. To learn more about AEW, please visit http://www.aew.com/. DATASOURCE: Weingarten Realty Investors CONTACT: Richard Summers, VP-Director of Investor Relations of Weingarten Realty Investors, +1-713-866-6050 Web site: http://www.weingarten.com/ http://www.aew.com/
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