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HANAM, SOUTH KOREA—Taubman Centers, Inc. of Bloomfield, MI has sold its 50% interest in the Starfield Hanam shopping center here to real estate funds managed by The Blackstone Group Inc. of New York City for $300 million.
The sale is part of an initiative announced by Taubman in February to sell its 50% interest in three Asian shopping centers—Starfield Hamam, CityOn.Xi’an (Xi’an, China) and the CityOn.Zhengzhou (Zhengzhou, China) to funds managed by Blackstone. In February, Taubman estimated the sale of the interests in the three properties would be valued at $480 million. The other two transactions are expected to close in 2019.
Net proceeds to Taubman in connection with the Starfield Hanam transaction are expected to be approximately $240 million following the allocation of property-level debt and transaction costs. Following the sale, Taubman will own a 17.15% beneficial interest in the shopping center.
Starfield Hanam, located east of Seoul, is the largest western-style shopping center in the country at nearly 1.7 million square feet. Anchored by Shinsegae department store, the center offers approximately 300 stores, restaurants, and a variety of sports and entertainment venues. The property is connected to the Misa Road, which is linked to the Greater Seoul freeway network, Starfield offers approximately 6,200 parking spaces and access to bus transportation routes.
“We’re pleased to have made substantial progress on this important transaction, while adding Blackstone as a strategic partner,” says Robert S. Taubman, chairman, president and CEO of Taubman Centers. “We continue to work toward closing the two remaining deals over the coming months.”
When the two other deals close, Taubman will retain a 25% interest in CityOn.Xi’an and a 24.5% interest in CityOn.Zhengzhou.