Rodamco to Buy Urban Shopping Centers

Rodamco North America, a Dutch owner of U.S. shopping malls, agreed to buy Urban Shopping Centers Inc., which owns the Century City Shopping Center among others, for $1.6 billion in cash and will assume $1.6 billion in debt to more than double in size and gain expertise in property services. Rodamco will pay $48 a share for Chicago-based Urban, 39% more than Monday’s closing price. It will also assume about $1.6 billion in debt and $400 million in preferred securities. The purchase will more than double Rodamco holdings to 36 malls, with 40 million square feet in 15 states, making it the third-largest U.S. mall owner. The company’s properties will include Century City Shopping Center in Los Angeles, Copley Place in Boston and the Galleria in Houston. Rodamco also gains a property leasing and management operation. Urban shares rose $12.88 to close at $47.31 on the New York Stock Exchange.