Equity One, Inc. (NYSE:EQY), an owner, developer, and operator of shopping centers, announced that it has entered into an agreement to sell 36 shopping centers comprising approximately 3.9 million square feet for $473.1 million to Blackstone Real Estate Partners VII. These assets were encumbered by mortgage loans having an aggregate principal balance of approximately $177.4 million as of June 30, 2011.

The shopping centers are predominately located in the Atlanta, Tampa and Orlando markets, with additional properties located in North Carolina, South Carolina, Alabama, Tennessee and Maryland. The portfolio generated net operating income of approximately $35.4 million for the twelve-month period ended June 30, 2011 and was 91% occupied as of June 30, 2011.

Equity One intends to use the proceeds from the sale to retire debt, fund its redevelopment pipeline, for future acquisitions and other corporate purposes.

Equity One estimates that as a result of entering into the transaction it will recognize a net impairment loss of approximately $32.0 to $36.0 million in the third quarter of 2011, which includes approximately $17.0 million related to unamortized debt discount costs on mortgages that are to be assumed by the buyer. Once there is more certainty on the exact closing date, Equity One will update its 2011 earnings guidance. The company's previous guidance specifically excluded impairment related charges and transaction costs and did not include the other effects of this sale of income producing properties.

As of June 30, 2011, Equity One owned or had interests in 219 properties comprising approximately 24 million square feet and consisting of 192 shopping centers, 10 projects under development or redevelopment, 12 non-retail properties, and 5 parcels of land.



More about EQY at www.equityone.net

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