Israeli Real Estate Company Gazit-Globe Invests in Mills Corp.

Strategic Insights -

Gazit-Globe Ltd., an Israeli real estate company, has purchased a 9% stake in Mills Corp. for $110 million and has proposed to invest up to $1.2 billion in new equity in the company. The investment is contingent on Mills concluding its pending sale of the Meadowlands Xanadu project. Gazit-Globe's chairman, Chaim Katzman, stated that his company intends to rebuild Mills and increase shareholder value. Mills' Chief Executive Officer, Mark Ordan, has agreed to pursue the offer and arrange a meeting with a Mills board committee.

Key Takeaways:

  • Gazit-Globe has invested $110 million in Mills Corp. and proposed to invest up to $1.2 billion in new equity.
  • The investment is contingent on Mills concluding its pending sale of the Meadowlands Xanadu project.
  • Gazit-Globe's chairman, Chaim Katzman, stated that his company intends to rebuild Mills and increase shareholder value.
  • Mills' Chief Executive Officer, Mark Ordan, has agreed to pursue the offer and arrange a meeting with a Mills board committee.
  • Gazit-Globe has little to no experience operating or developing regional malls.
  • Mills shares were up nearly 14% to $19.35 on Wednesday.
  • Gazit-Globe's investment would amount to $24.50 per share.
  • Gazit-Globe has 470 properties worth $6.5 billion in North America, Europe, and Israel.
  • Most of the properties are shopping centers smaller than regional malls.
  • Gazit-Globe has been in discussions with Laurence Siegel, Mills' former CEO, about a recapitalization of Mills.

Statistics:

  • Gazit-Globe has invested $110 million in Mills Corp.
  • The proposed investment by Gazit-Globe could reach $1.2 billion.
  • Mills shares were up 14% to $19.35 on Wednesday.
  • Gazit-Globe's investment would amount to $24.50 per share.
  • Gazit-Globe has 470 properties worth $6.5 billion in North America, Europe, and Israel.
  • Most of the properties are shopping centers smaller than regional malls.

Sources:

  • The Record, Hackensack, N.J.
  • Bloomberg News
  • McClatchy-Tribune Business News