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Partial Morgan Stanley Buy Puts $1.25B Value King of Prussia Mall

by thiryj
CoStar reports: Lend Lease Group agreed to sell its interest in the King of Prussia Shopping Mall to the Morgan Stanley Prime Property Fund at a gross valuation of $1.25 billion.

Lend Lease has a 50% interest in the asset and will receive net proceeds of about $545 million after taking into account the asset level debt. The value of Lend Lease’s 50% interest in King of Prussia just a year ago was $348.5 million, according to company valuations.

Lend Lease expects to book a profit of about $100 million on the sale, net of tax and other costs.

Lend Lease will use the proceeds to fund its investment pipeline in the U.S. and to repay debt, the company said.

The transaction is subject to customary closing conditions, which is expected to occur in August 2011.

At 2.39 million square feet, King of Prussia Mall is the largest enclosed retail shopping mall on the East Coast with eight department stores, 350 specialty shops and 35 restaurants. It is in northwest of Philadelphia.

Lend Lease acquired its interest in 1996. The joint owner is Kingmak Associates, a group of former and present Kravco Co. executives.

Partial Morgan Stanley Buy Puts $1.25B Value on Largest Mall on the East Coast – CoStar Group.