The Mills Enters $2B Mall JV

The Mills Corp., a real estate investment trust based in Chevy Chase, Md., has announced an arrangement with Colony Capital Acquisitions and Kan Am USA Management to develop a Northern New Jersey mall project.Under the terms of a letter of intent entered into by the beleaguered retail REIT, Colony would arrange for construction financing for the $2 billion project and make a "significant equity infusion" into the joint venture, Mills reported. Kan Am has been the REIT's partner on the project since 1997, and while the recapitalized partnership will continue to have the same obligations to the New Jersey Sports and Exposition Authority, The Mills will not have any post-closing financial obligations, according to the REIT. As consideration for the transaction, the REIT would issue at closing either 4.5 million shares of its common stock or 4.5 million units of The Mills LP, redeemable for the same number of shares of The Mills common stock. The REIT can be found online at http://www.themills.com.