The Shops at Wiregrass in Wesley Chapel was sold off in a bundle of ten regional retail malls by Cleveland-based Forest City Realty Trust Inc. to investment partner QIC of Australia. The total deal came to $3.2 billion — with $1.55 billion of that sum going to Forest City. The specific value of the Wiregrass mall was not disclosed.
Forest City had previewed its intentions last year when it announced it was considering "strategic alternatives for the company's retail portfolio'' of 14 regional malls and 19 specialty retail centers.
The deal reflects Forest City's new real estate focus.
"This transaction is a win-win for all parties, as we continue to focus our business on urban residential, office and mixed-use assets," stated David J. LaRue, Forest City CEO, "and QIC acquires full ownership of a U.S. retail presence with high-quality regional malls in strong markets."
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"QIC and Forest City have been in a very successful joint venture since 2013, and we are pleased to have reached this milestone," said Steve Leigh, QIC's managing director of global real estate.
For QIC, the transaction bolsters its U.S. presence based on "a decade of amassing market intelligence and understanding" of the U.S. retail sector, stated Leigh. "We view the U.S. real estate market and the retail sector in particular as a strong investment opportunity. We are encouraged by the broader economic conditions in the U.S. and the resilience of the consumer as demonstrated by continuing strength in the underlying fundamentals for the portfolio.
"We understand the importance of regional malls to their local communities and have the capability and the capital to evolve these assets into multi-faceted destinations," he said.
The Shops at Wiregrass, a 642,000-square-foot open-air mall, commonly referred to as a lifestyle center, opened in 2009 at the corner of State Road 56 and Bruce B. Downs Boulevard. The deal with QIC is expected to close by the end of this year.