SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): December 8, 1997
THE TAUBMAN REALTY GROUP LIMITED PARTNERSHIP
(Exact Name of Registrant as Specified in its Charter)
DELAWARE
(State or Other Jurisdiction of Incorporation)
33-73988 38-3097317
(Commission File Number) (I.R.S. Employer Identification Number)
200 East Long Lake Road, Suite 300, P.O. Box 200, Bloomfield Hills, Michigan
48303-0200
(Address of Principal Executive Office) (Zip Code)
(248) 258-6800
(Registrant's Telephone Number, Including Area Code)
None
(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other matters.
The following is the text of a press release issued by Taubman Centers,
Inc., the managing general partner of The Taubman Realty Group Limited
Partnership, on December 8, 1997.
CONTACT: Christopher J. Tennyson
(248) 258-7519
Barbara K. Baker
(248) 258-7367
www.taubman.com
Taubman Announces Mall Acquisitions
Miami and Columbus Properties Highlight Year of Growth
BLOOMFIELD HILLS, Mich., Dec. 8 -- Taubman Centers, Inc. (NYSE:TCO) today
announced the acquisition of The Falls shopping center in Miami, Florida and the
agreement to purchase The Limited, Inc.'s interest in The Mall at Tuttle
Crossing, a Taubman property located in Columbus, Ohio.
"These transactions crown a year of significant growth in our company's
assets," said Robert S. Taubman, president and chief executive officer of
Taubman Centers. "During 1997, we have increased our GLA by over 17 percent,
completing about $575 million of productive acquisitions, development and
expansion activities. At the same time, we've enhanced both the quality of our
portfolio and extended our geographic diversity."
In addition to these acquisitions, Taubman Centers' growth has been driven
in 1997 by the opening of The Mall at Tuttle Crossing in Columbus in July, the
completion of the expansion at Westfarms (West Hartford, CT) in September, the
acquisition of Regency Square shopping center (Richmond, VA) in September, the
debut of Arizona Mills (Tempe, AZ) in November, and the opening of the new mall
shops at Biltmore (Phoenix, AZ) throughout the year.
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The Falls is First Florida Property
The Falls was purchased from Heitman Capital Management Corp., on behalf
of its pension fund clients. The purchase price was $156 million in cash.
The Falls is an open air, one-level, 824,000 square foot regional center
located in affluent Dade County. The center is anchored by Bloomingdale's and
Macy's and is well situated to capitalize on both the local area's continued
growth as well as greater Miami's strong tourist trade. The mall was originally
built in 1980 and was totally redeveloped and expanded in 1996. It is currently
90 percent occupied. The Falls is expected to achieve mall tenant sales this
year in excess of $420 per square foot, which is above the 1996 Taubman
portfolio average of $365 per square foot -- the highest in the industry. The
center's 310,000 square feet of mall tenant space features a strong mix of over
100 specialty stores and restaurants of which over 60 percent are unique to the
southern Miami market.
"The Falls' sales productivity and distinctive market position are
consistent with the quality of our properties," said Mr. Taubman. "We expect
this acquisition to produce EBITDA of about 8 percent of the acquisition cost in
1998 and to be accretive during its first calendar year. In addition, The Falls
is our first property in the growing Florida market."
Tuttle Crossing Transaction
Taubman's ownership interest in The Mall at Tuttle Crossing is subject to
a long-term participating lease with Columbus-based retailer, The Limited, Inc.
Taubman will purchase all of The Limited, Inc.'s interests in the lease for
$76.3 million in cash and take fee simple title to the underlying land and
buildings. The transaction is scheduled to close by year end.
"The Limited's decision presented an attractive opportunity to increase our
investment in this extraordinary shopping center," added Mr. Taubman. "This
transaction eliminates our lease payments to The Limited, Inc. and enables us to
capture the full growth potential of this dominant asset. We anticipate that the
purchase will be slightly accretive in 1998 and significantly more accretive
beginning in 1999."
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Anchored by Marshall Field's, Lazarus, JCPenney and Sears, the 980,000
square foot Mall at Tuttle Crossing is located in the affluent northwest
quadrant of Columbus at the intersection of I-270 and Tuttle Crossing Boulevard.
The center's 389,000 square feet of mall tenant space features such well-known
retailers as Ohio's first Golf America, Harold's, and Right Start stores, the
newest Abercrombie & Fitch prototype, one of only a dozen Pottery Barn stores
with a design studio, a 20,000 square foot Finish Line, and a nearly 30,000
square foot, two-level Eddie Bauer mini department store.
"While we are pleased with all of this activity, we are continuing to
pursue growth opportunities," said Mr. Taubman. "Two additional centers are
currently under construction. Great Lakes Crossing (Auburn Hills, MI), a value
regional shopping center will open in November, 1998 and MacArthur Center
(Norfolk, VA) will open in the Spring of 1999. We anticipate opening, on
average, at least one new development project each year while continuing to
pursue acquisition opportunities to take full advantage of the consolidation of
the industry."
Taubman Centers' portfolio includes 25 urban and suburban regional and
super regional shopping centers in 12 states. The company is headquartered in
Bloomfield Hills, Michigan.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
THE TAUBMAN REALTY GROUP
LIMITED PARTNERSHIP
Date: December 8, 1997 By: /s/ Lisa A. Payne
----------------------------
Lisa A. Payne
Executive Vice President
and Chief Financial Officer
