Chicago and New York, May 16, 2013 — General Growth Properties, Inc. (NYSE: GGP) and TIAA-CREF announced today they have formed a partnership to own and operate The Grand Canal Shoppes, including The Shoppes at the Palazzo, located in Las Vegas, Nev.
The Grand Canal Shoppes is located at the heart of the Las Vegas Strip within The Venetian and The Palazzo hotel, casino and resort complex. The property is 99 percent leased and comprises approximately 774,000 square feet of gross leasable area occupied by upscale retailers and restaurants. The Grand Canal Shoppes generates more than $1,000 of sales per square foot.
Effective with the partnership formation, GGP and TIAA-CREF will each own approximately 50 percent of The Grand Canal Shoppes. The partnership is limited to the retail portion of the property. Prior to the formation of the partnership, GGP owned 100 percent of the property. The transaction generated approximately $410 million of net proceeds, and GGP will continue to provide management and leasing services.
TIAA-CREF continues to seek opportunities in regional retail properties with strong income streams as part of a well-diversified real estate portfolio. The company has $33 billioni in private real estate investments in the office, retail, industrial and multifamily sectors across the United States, Canada and Western Europe.
General Growth Properties is a fully integrated, self-managed and self-administered real estate investment trust focused exclusively on owning, managing, leasing, and redeveloping high quality retail properties throughout the United States. GGP’s portfolio is comprised of 124 malls in the United States comprising approximately 124 million square feet. GGP is headquartered in Chicago, Illinois, and publicly traded on the NYSE under the symbol GGP.
TIAA-CREF (www.tiaa.org) is a national financial services organization with $520 billion in assets under management (as of March 31, 2013) and is the leading provider of retirement services in the academic, research, medical and cultural fields.