Mills Corp. (MLS), in a move to stay afloat, sells its interests in three foreign malls--Vaughan Mills, St. Enoch Centre, and Madrid Xanadu, to a Candian firm.
The WashingtonPost.com states in a recent article that the deal is expected to net $500 million for Mills and would go toward paying off about $2 billion in debt. After a series of inquiries about its accounting practices, the company is under a year-end deadline to find a buyer or face a possible loan default.
In a Mills Corp. press release the company states that the agreement, which is subject to final approval of both firms’ boards of directors and
other conditions, could close as soon as Aug. 31, 2006 for St. Enoch Centre and Vaughan
Mills, and as soon as Sept. 30, 2006 for Madrid Xanadú.
The Mills and Ivanhoe each currently own 50% of Vaughan Mills and St. Enoch Centre.
Madrid Xanadú is wholly owned by The Mills. Madrid Xanadú opened in May 2003,
Vaughan Mills opened in November 2004, and St. Enoch Centre was jointly acquired by
The Mills and Ivanhoe Cambridge in February 2005.
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