Ontario Mills Gets New Investors
The Mills Corp., owner of the Ontario Mills shopping center in Ontario, Calif., will take on new investors in the outlet mall to the tune of $243 million.
Arlington, Va.–based Mills and real estate partner Kan Am Realty Inc. of Atlanta have agreed to convey a 50 percent interest in the center to an investment fund managed by JPMorgan Fleming Asset Management.
The transaction is expected to close later this month following lender approval. Mills will convey a 15 percent partnership interest to the new investors, and Kan Am will turn over its entire 35 percent stake.
The transaction includes $73 million of joint venture debt to allow Mills and the new investors to pursue other projects. Mills will remain the managing general partner of the joint venture.
“Ontario Mills fits well with our strategy of owning dominant major malls, and we believe that this investment will prove to be a valuable venture with beneficial returns,” said Sheryl Crosland, managing director and head of retail real estate investing for JPMorgan Fleming.
Mills will receive $50 million in net proceeds, which it will use to reduce the balance of its credit line and for general corporate purposes. The company has an interest in 27 U.S. shopping centers, including the Del Amo Fashion Center in Torrance, Calif., and The Block at Orange in Orange, Calif. —Robert McAllister
