Cousins Properties and Prudential Insurance have created a joint venture to share ownership of Cousin’s 5 “Avenue” properties. The Avenue concept has taken the mall and brought it further out into suburbs that are well to do, done in an open air style with tasteful landscaping and parking.
It will be interesting to see whether Cousins uses the 342 million dollars in cash it receives to develop more of Avenue style concepts. They are wildly popular in the areas they have been built and from what I see the rents that are paid to them, should be very profitable for the joint venture.
In one of the largest real estate partnerships of its kind in the Southeast, locally based Cousins Properties Inc. and the Prudential Insurance Co. of America have formed a nearly $700-million joint venture for the ownership, development, investment, management and leasing of selected commercial properties. The deal is expected to close by May 31. The two companies formed a similar JV in 1998 to cover other projects.
Cousins initially will be contributing the Avenue East Cobb, the Avenue West Cobb, the Avenue Peachtree City, the Avenue Viera and Viera Market Center aggregately valued at $342.4 million, Cousins officials say in a prepared statement. Prudential is contributing at least $342 million in cash. PREI’s contributions are scheduled to be made in four installments over the balance of 2006.
The aggregate value of Cousins’ contributions could increase by $20.5 million “if certain conditions are satisfied” at Viera MarketCenter and the Avenue West Cobb which are both under construction, the company states. If the value of Cousins’ contributions increase, PREI would increase its cash contributions to match the agreed value of the REIT’s properties. Cousins will continue to manage and lease the contributed projects.
posted by Rick at
5/04/2006 07:16:00 PM
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