13 MN Malls Sold as Part of $9.4B Deal

Blackstone Group, LP-a private equity firm-has reportedly purchased about 600 shopping malls, including 13 in Minnesota, from Australia-based Centro Properties.

Australia-based Centro Properties has sold its retail portfolio-which includes 600 malls, 13 of which are in Minnesota-to New York-based Blackstone Group, LP, for $9.4 billion, according to a report by Reuters.

The Blackstone Group is a private equity firm that also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory, and fund placement services.

Blackstone's $9.4 billion purchase price beat rival bidders, including Morgan Stanley Real Estate and NRDC Equity Partners, both based in New York, Reuters reported.

Reuters reported that Blackstone will recapitalize the portfolio-which mainly includes neighborhood shopping centers-before seeking a return on the investment in three to five years.

According to Reuters, Centro will use the proceeds from the sale to recapitalize its Australian property assets, which includes mainly regional and sub-regional shopping centers.

Centro, which will reportedly net about $1.38 billion from the deal after paying down debt, announced a restructuring plan on Tuesday that includes the sale of its assets in the United States and debt restructuring.

Click here to view a list of the 13 properties in Minnesota that were sold under the deal.

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