Montreal, Canada – Ivanhoe Cambridge Inc. (“Ivanhoe Cambridge”), preeminent Canadian-based owner, manager and developer of shopping centres in North America and Europe, announced today that it acquired from The Mills Corporation (“The Mills”) the remaining 50% interest in Vaughan Mills and St. Enoch Centre it did not already own and a 100% interest in Madrid Xanadú. The total value of the transaction is approximately US$988 million before transaction costs.
“The acquisition of The Mills’ interest in Vaughan Mills, St. Enoch Centre and Madrid Xanadú is in line with Ivanhoe Cambridge’s strategy to further enhance the quality of our portfolio of properties under management, and diversify geographically by expanding our international activities, investments and networks,” said René Tremblay, President and Chief Executive Officer of Ivanhoe Cambridge. “It also allows Ivanhoe Cambridge to leverage its extensive industry knowledge and management and development expertise to maximize the performance of these best-in-class properties.”
Ivanhoe Cambridge has a strong operational knowledge of Vaughan Mills and St. Enoch Centre having previously jointly owned these properties with The Mills. Moreover, the Company is also very familiar with the Spanish market where Madrid Xanadú is located and where it is currently co-developing Islazul Centro Comercial, a 900,000-square-foot regional shopping centre. All three newly acquired properties are flagship shopping centres in key markets and with significant value-added potential. In that regard, Ivanhoe Cambridge remains committed to the previously announced redevelopment of St. Enoch Centre.
In addition to its strong presence in Canada, the Company has an established presence in Europe, where it owns retail properties in France, Poland, Germany, Spain and the United Kingdom. Its Madrid office oversees European investments and projects.
It is business as usual at all three properties, and Ivanhoe Cambridge will work to ensure a smooth transition for retailers, employees and consumers.
“Ivanhoe Cambridge looks forward to working with retailers and employees of Vaughan Mills, St. Enoch Centre and Madrid Xanadú,” said René Tremblay. “We know they share our commitment to offer consumers a welcoming and entertaining shopping experience. Together, we will build on the success of these properties.”
About Vaughan Mills (Toronto, Canada)
Vaughan Mills is a 1.2 million-square-foot (111,500 square metres) retail and entertainment destination in Vaughan, Ontario, just north of Toronto. Vaughan Mills opened in November 2004 and was the first enclosed regional shopping centre to be built in Canada in more than 14 years. Vaughan Mills features more than 200 stores, restaurants and entertainment venues. Many are the first of their kind in Canada, including Bass Pro Shops Outdoor World, NASCAR SpeedPark, Lucky Strike Lanes and Hudson's Bay Company's designer Depot. The centre also features Canada’s only Holt Renfrew Last Call and the world’s largest Tommy Hilfiger Outlet.
About St. Enoch Centre (Glasgow, Scotland)
St. Enoch Centre is located in the heart of Glasgow's busy city-centre shopping district - the largest retail market in the United Kingdom outside central London. The centre features 715,000 square feet (66,425 square metres) of retail space and attracts an estimated 20 million visitors per year. Ivanhoe Cambridge has plans to redevelop the centre. The redevelopment will include adding 250,000 square feet of retail and leisure space, and a mall refurbishment that will dovetail with plans already in place to regenerate Glasgow's waterfront and main city centre areas, intended to transform the city into a major tourist destination.
About Madrid Xanadú (Madrid, Spain)
Madrid Xanadú, which opened in 2003, is the most modern and innovative shopping and leisure centre in Spain. This 1.4 million-square-foot destination (134,000 square metres) is home to more than 220 shops including retail, services, leisure and dinning. The centrepiece of the centre is the only indoor snow facility in Spain. The centre is also anchored by Hipercor and Tiendas El Corte Inglés and the largest selection of top national and international brands, some of them new to the Spanish market. The leisure offer, geared towards family, includes an indoor go-cart track, 15 cinema screens, a mini golf, a mini theme park, a soft play area, thematic restaurants and much more. Madrid Xanadú is located in the municipality of Arroyomolinos, of southwest Madrid, Highway Extremadura (A-5) exits 22 and 25. It is also accessible through the Radial R-5 highway and the M-50 and has more than 7,500 free surface parking spaces and 500 garage spaces. Madrid Xanadú is open all year long.
About Ivanhoe Cambridge
Ivanhoe Cambridge is a recognized leader in the Canadian real estate industry. It is one of the country’s pre-eminent property owners, managers, developers and investors. The Company focuses on high-quality shopping centres located in urban areas. Beyond its strong Canada-wide presence, the Company is also active in the United States, Brazil, Asia and Europe – where it partners with prominent real estate entities. Its real estate portfolio consists of more than 43.2 million square feet of retail space and includes over 65 regional and super-regional shopping centres. As at December 31, 2005, the market value of Ivanhoe Cambridge’s assets reached CAD $9.3 billion.
Headquartered in Montreal, Quebec, Canada, Ivanhoe Cambridge is a principal real estate subsidiary of the Caisse de dépôt et placement du Québec, the largest institutional fund manager in Canada. Amongst its shareholders, the Company also counts four prominent Canadian pension funds.