Private property investor and developer The Starmount Company, advised by Savills Granite, has sold its North Carolina based retail and office portfolio to a joint venture partnership as well as a portfolio of eight community shopping centres.  The transactions total $540.8 million (£262 million).

The joint venture between CHATTANOOGA, Tenn.--(BUSINESS WIRE)--CBL & Associates Properties, Inc. (NYSE: CBL) and Teachers’ Retirement System of The State of Illinois (“TRS”), advised by Commonwealth Realty Advisors, Inc has purchased properties including Friendly Centre and The Shops at Friendly Centre in Greensboro, six office buildings located adjacent to Friendly Centre in Green Valley Office Park and Renaissance Center in Durham, NC.  In addition, CBL will also acquire, from The Starmount Company, a 100% interest in a portfolio of eight community shopping centres located in Greensboro and High Point, NC, and twelve office buildings located in Greensboro and Raleigh, NC and Newport News, VA.

Gerry Mason, executive managing director of Savills Granite, says: “CBL Properties, which owns several large shopping centres in the Raleigh/Greensboro area, made a strategic acquisition of the Starmount Portfolio to increase their local market dominance.  The Starmount Company developed the portfolio over a period of nearly 40 years, creating some of the highest quality retail and office product in the Carolinas.”

The Friendly Centre in Greensboro comprises one million sq ft (92,900 sq m) and was originally developed in 1957, it has since been expanded several times. The centre is currently 94% occupied and is anchored by Belk, Apple Computer, Macy’s, Sears, a 16-screen Grande Cinema, Barnes & Noble and Old Navy. There is currently a 20,000 sq ft (1,858 sq m) expansion under way which is expected to be completed in spring 2008.  In addition to the centre, further 253,000 sq ft (23,503 sq m) retail space is located adjacent of which 88.9% is occupied with construction of a 62,500 sq ft (5,806 sq m) second phase under way.

The joint venture office portfolio includes six Class-A office building located in the prestigious Green Valley Office Park, which is adjacent to The Friendly Centre. The tenants include most of the area’s major bank branches and several net leased credit-tenants.

Renaissance Centre is a 355,000 sq ft (32,979 sq m) power center anchored by REI (outdoor sporting goods), World Market, Linens N’ Things and offers a premier selection of restaurants including PF Chang’s, and Ted’s Montana Grill. It is situated adjacent to The Streets at Southpoint on 21.0 acres off of I-40, in the primary retail hub of Durham NC, and is currently 89% occupied. The centre was developed in phases beginning in 2004 and completed in 2007.

CBL is one of the largest and most active owners and developers of malls and shopping centers in the United States.

For further information, please contact:
Gerry Mason, Savills Granite
Tel: +1 (1) 212 328 3940

Victoria Cambridge, Savills press office
Tel: +44 20 7409 8940