Mills Sells 50% Stake in Del Amo Center

Mills Corp., a developer and manager of shopping centers, said Monday that it had agreed to sell a 50% stake in the Del Amo Fashion Center to JP Morgan Fleming Asset Management.

Mills, a real estate investment trust based in Arlington, Va., sold the holding in the Torrance mall for $244.5 million including debt. Mills will receive net proceeds of $85 million after transaction costs and will use the money to repay debt.

The Del Amo Fashion Center has more than 2 million square feet of leasable space and includes stores such as Macy’s, JC Penney and Sears.

Mills bought the mall in June 2003 for $442 million from Los Angeles developer Guilford Glazer, who in 2002 was ranked by Forbes magazine as one of America’s wealthiest people with a net worth of $700 million. Glazer built the mall in 1971.

Del Amo, one of the largest malls in the nation, last year generated annual sales per square foot of $400.

Mills, which also owns Ontario Mills and the Block at Orange, will be the managing member of the joint venture.

The joint venture plans to pursue Mills’ previously announced redevelopment plans for the mall. The demolition of the vacant northeast wing has already begun, but now both Mills and JP Morgan Fleming will provide the funds required for the redevelopment.

“JP Morgan Fleming, which has been involved in numerous redevelopment projects, has reviewed our plans and concurs with our vision for a revitalized Del Amo Fashion Center,” said Laurence C. Siegel, chairman and chief executive of Mills.

Bloomberg News was used in compiling this report.