Oct. 17 (Bloomberg) -- General Growth Properties Inc., the second-largest U.S. mall owner, refinanced $966 million of adjustable-rate mortgages on four properties into fixed-rate loans with an average term of 9.1 years.
The real estate investment trust’s share of the new loans totals $483 million after adjusting for the company’s ownership in the shopping malls, Chicago-based General Growth said today in a statement. The refinancings lowered the interest rate to an average 4.63 percent from 5.66 percent on the prior maturing mortgages.
General Growth, which left bankruptcy protection in November, has been refinancing debt to lower expenses and plans to redevelop, expand and refurbish malls to boost growth. The new loans meet the company’s financing plans for this year, according to the statement.
“We have accomplished our 2011 goals and are now focused on 2012 financing opportunities,” Chief Executive Officer Sandeep Mathrani said in the statement.
The newly refinanced malls are Natick Mall in Natick, Massachusetts; Galleria at Tyler, in Riverside, California; First Colony Mall in Sugar Land, Texas; and Northbrook Court in Northbrook, Illinois.
General Growth has ownership and management interest in 166 malls in 43 states, totaling 169 million square feet (15.7 million square meters), the company said in the statement. It is second in size to Simon Property Group Inc., based in Indianapolis.
--Editors: Kara Wetzel, Andrew Blackman
To contact the reporter on this story: Kathleen M. Howley in Boston at firstname.lastname@example.org.
To contact the editor responsible for this story: Kara Wetzel at email@example.com.