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EXHIBIT 99.1
SALE OF FOUR SHOPPING CENTERS, THREE MORTGAGE TRANSACTIONS, & MODIFICATION OF
SECURED CREDIT FACILITY
MANHATTAN BEACH, CA December 18, 2000 -- Center Trust, Inc. (NYSE: CTA), a real
estate investment trust, today announced that it has completed the sale of four
community shopping centers for an aggregate sales price of $59.2 million. The
company also announced that it has secured three non-recourse mortgages and
completed a modification of its secured credit facility. Collectively, these
transactions provide the company with availability on its secured credit
facility of approximately $133 million. The company anticipates that it may, to
the extent they are available at a discount to par, purchase some of its
convertible debentures, in open market or privately negotiated transactions,
prior to their January 15, 2001 maturity date.
Asset Dispositions
On December 14, 2000, the company completed the sale of three community centers
to an unrelated third party. The assets sold consisted of Fairwood Shopping
Center, a 208,000 square foot center located in Renton, Washington, Covington
Square, a 150,000 square foot center located in Covington, Washington and San
Fernando Mission Plaza, a 67,000 square foot center located in San Fernando,
California. In addition, on December 13, 2000, the company completed the sale of
Pacific Linen Plaza, a 69,000 square foot shopping center located in Lynnwood,
Washington. The combined sales price of the four assets was $59.2 million. After
the repayment of debt of $27.8 million and other closing costs, net cash
proceeds of $26.3 million were used to reduce the outstanding balance on the
company's secured credit facility.
Financing Transactions
On November 30, 2000, the company closed on three non-recourse mortgages with
total proceeds of $50.2 million. These mortgages, each secured by a single
asset, have an initial term of two years with the ability to extend for an
additional three years, and bear interest at LIBOR plus 230 basis points. The
three properties financed, all of which are located in California, were
Fullerton Town Center, La Verne Town Center and Country Fair Shopping Center.
The assets were previously part of a five-asset pool that secured a single
mortgage. The proceeds from the three new mortgages and other cash were used to
defease the loan at a total cost of $55 million. As a result, two properties,
San Fernando Mission Plaza and Rosedale Village were unencumbered. Subsequently,
the San Fernando Mission Plaza asset was sold as outlined above and Rosedale
Village was added as collateral under the company's secured credit facility.
On December 15, 2000, the company executed a modification to its secured credit
facility. Under the terms of the modification, the total commitment under the
credit facility was adjusted to $193 million. The maximum advance rate against
the assets pledged to the facility increased from 70% to 78% of underwritten
value. Interest on the facility is based upon the loan balance as a percentage
of the underwritten value of the collateral pool. If the loan to value is less
than 70%, interest on the balance accrues at a rate equal to 250 basis points
over LIBOR and increases to 275 basis points over LIBOR and 300 basis points
over LIBOR as the loan to value exceeds 70% and 75%, respectively.
About Center Trust
Center Trust, Inc., a fully integrated, self-managed real estate investment
trust, is a leading developer, owner and manager of retail shopping centers in
the Western United States. The company owns or controls a portfolio of 43 retail
properties, comprised of 37 unenclosed, anchored shopping centers, 2 regional
malls and 4 single tenant facilities.
Safe Harbor
Certain statements contained in this release are forward-looking within the
meaning of the Private Securities Litigation Reform Act of 1995. Forward-
looking statements involve known and unknown risks, uncertainties and other
factors that could cause actual results to differ materially from what is
currently anticipated. Those risks include, among others, the ability of the
company to successfully complete financing and asset disposition transactions in
an amount sufficient to repay the convertible debentures, the ability of the
company to meet the conditions and covenants required to maintain availability
under its credit facility, national and local economic, business and real estate
conditions that will, among other things, affect demand for retail properties,
availability and
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creditworthiness of prospective tenants, the level of lease rents and the
availability of financing for both tenants and the company, adverse changes in
the real estate markets including, among other things, competition with other
companies, risks of real estate acquisitions and development (including the
failure of pending acquisitions to close and successful completion of
renovations), governmental actions and initiatives, and environmental/safety
requirements, and other risks detailed from time to time in the SEC filings of
Center Trust, Inc.
