Mills Corp. To Divest Its Foreign Mall Stakes
Again, from the Washington Post. Upon further reflection, the articles on Mills probably ranks low on the TNSN's radar as well as that of the Nashville Post, only because Mills HQ is not in this area. If this were about a hotel on the brink that Gaylord operated out of state, I'm sure both would be all over such a developing story, as it would impact the parent company which is locally based. Wow, there was probably an easier way to say that. Opry Mills is just a part of huge number of malls operated and partially owned by Mills Corp, which is based in the DC area, hence, covered aggressively by the Washington Post. There I go again.
For some reason,this story is still very interesting to me. I never dreamed that a
retail developer in these boom times of the 21st century as big as Mills Corp might go under.
Chevy Chase-based mall developer Mills Corp. yesterday announced plans to sell its stakes in three foreign malls to a Canadian firm, as the struggling company tries to stay afloat.
The deal is expected to net $500 million for Mills and would go toward paying off about $2 billion in debt. After a series of inquiries about its accounting practices, the company is under a year-end deadline to find a buyer or face a possible loan default.
.
"The deal is expected to net $500 million for Mills and would go toward paying off about $2 billion in debt. After a series of inquiries about its accounting practices, the company is under a year-end deadline to find a buyer or face a possible loan default.
The three malls, which were sold to Montreal developer Ivanhoe Cambridge Inc., are Vaughan Mills in Ontario; St. Enoch Centre in Glasgow, Scotland; and Madrid Xanadu. Ivanhoe Cambridge already has a 50 percent interest in Vaughan Mills and St. Enoch Centre.
Mills has been plagued by financial troubles in the past year: a series of layoffs, ballooning construction costs at its massive Xanadu project at the Meadowlands in New Jersey, and a more than 50 percent reduction in the profits recorded from 2003 to 2005.
