CBL Forms Venture With Aussie Investor

CBL & Associates, Chattanooga, Tenn., has formed a joint venture with Galileo America REIT, the U.S. affiliate of the Australian Galileo America Shopping Trust, to invest in shopping centers in the United States.CBL is contributing a 90% stake in its interests in 51 "power" and community shopping centers to the venture for total consideration of about $516 million, the real estate investment trust said. CBL will retain a 10% stake in the joint venture. CBL said it expects to use the net cash proceeds of about $387 million from the property contributions to invest in new developments, future mall acquisitions, and other retail properties. The joint venture is assuming about $99 million of existing debt on 10 of the properties, and CBL will retire $53 million in loans associated with two of the properties. The venture is also obtaining debt financing of about $160 million in connection with the transaction. CBL said it will manage all the Galileo properties in the United States for a fee. The retail REIT can be found online at http://www.cblproperties.com.