I just got an unsolicited email asking if our company might be interested in a 7 mall portfolio. I think we will pass but maybe someone on BP might be interested.

E-Mail Reads as Follows:

Just wanted to see if your group is interested in a 7-mall portfolio. If interested, please let me know asap.

The properties consist of seven large Malls totaling approximately 6,855,892 square feet, in CA, NY, CT, and FL

These seven malls have a total purchase price of $1,877,000,000. One Billion eight hundred seventy. If desired by the acquirer, a major bank would provide financing in the amount of $1,100,000,000 of the total cost of the acquisition on terms to be discussed. That financing would reduce the acquirers out of pocket costs to approximately $777,000,000.

This price reflects (A) a New Buyers premium on the Malls of $50,000,000; (B) Investment Banking fees $36,840,000 and (C) legal expenses for our clients of approximately $7,000,000. The total price per square foot for these malls, which includes all land as fee owned is $273.00 per square foot.

The Malls presently generate approximately $1,225,700,000 sales per annum. It is anticipated that there will be approximately $107,000,000 per annum of Free and Clear Cash flow with an approximate yield of nearly 6% to the Gross Purchase Price. If the financing mentioned above were utilized, the cash-on-cash return would be 8.8 +%.

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Humor - Really

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