The Mills Corp. Plans RE Interests Sale

The Mills Corp., Chevy Chase, Md., plans to sell its interests in some overseas properties to Ivanhoe Cambridge, a Canadian property investor, and expects to net about $500 million from the sales.The real estate investment trust is currently in the process of exploring its strategic alternatives, with the help of Goldman Sachs and JP Morgan. The retail properties are located in Ontario, Canada; Glasgow, Scotland; and Madrid, Spain. The Mills Corp. and Ivanhoe Cambridge each currently own 50% of the Ontario and Glasgow properties and Mills is the sole owner of the Madrid property, the real estate investment trust reports. The transaction values the three centers at approximately $1.5 billion, Mills reports. The REIT plans to apply proceeds from the sale to pay down a part of its senior term loan with Goldman Sachs Mortgage Co. The consent of lenders under the senior term loan is required to close the sale and Mills is in the process of seeking such consent.