Retail Value Inc. sells off remaining 9 shopping centers in Puerto Rico for $550M
Retail Value Inc., the owner of nine shopping centers in Puerto Rico, has agreed to sell its remaining properties in Puerto Rico to Kildare Acquisitions for $550 million in cash.
This is the third time in the last six months that the independent publicly traded company has announced the sale of a local property. In December 2020, the company confirmed the sale of Plaza Real in Humacao for $50 million to an undisclosed buyer, followed by the sale of El Señorial Plaza in June, for $20.4 million, as News is my Business reported.
The sale involved some 3.5 million square feet of leasable retail space spread out throughout the island.
According to the filing with the Securities and Exchange Commission, the sale does not include any cash or restricted cash held at closing, which is expected to occur by the end of the third quarter of 2021.
In the filing, RVI confirmed that the purchaser deposited $15 million in an escrow account, a deposit that is nonrefundable and will be credited against the purchase price at closing.
RVI anticipates it will use a portion of the net proceeds from the sale of its remaining properties in Puerto Rico to repay the entire balance of the mortgage loan it holds, which at June 30, 2021, had an outstanding balance of about $214.5 million.
The latest transaction will mean the company’s definitive exit from the Puerto Rico market. The properties involved in this deal are: Plaza del Atlántico in Arecibo (223,261 square feet); Plaza del Sol in Bayamón (709,758 square feet); Plaza Río Hondo in Bayamón (555,681 square feet), Plaza Escorial in Carolina (636,353 square feet); Plaza Cayey in Cayey (338,644 square feet); Plaza Fajardo in Fajardo (274,310 square feet); Plaza Walmart in Guayama (163,599 square feet), Plaza del Norte in Hatillo (636,000 square feet); and Plaza Isabela in Isabela (259,011 square feet).
All of the properties were on RVI’s website, listed as “disposition properties.”