Mills Shifts Opry Stake to German Firm

The Mills Corp., Arlington, Va., is transferring a 50% joint venture interest in Opry Mills to Kan Am Grund, a German real estate fund operator, for $158.1 million.This includes the transfer of $89.3 million of "allocable joint venture debt," the real estate investment trust said. Under the terms of the joint venture, both parties are to receive "an unguaranteed 9% preference on equity" on the 1.2 million-square-foot Nashville, Tenn., retail property, Mills said. The REIT's interest and cash flows in the property will "be increased disproportionately" after payment of the 9% preference. This is Kan Am Grund's second joint venture investment in a stabilized property with Mills, the REIT said. Mills expects to use the proceeds from the transaction partly to fund its development pipeline and to pay down its line of credit. WestWind Capital Partners completed the transaction on behalf of Kan Am Grund.