Tanger Factory Outlet Centers Inc., a U.S. real estate investment trust that owns 33 shopping centers, said Monday that it agreed to buy the remaining two-thirds of a joint venture from Blackstone Real Estate Advisors for $282.5 million.
The venture includes nine factory outlet centers — including one in Park City — covering about 3.3 million square feet, which was acquired in December 2003 in a venture by Tanger, based in Greensboro, N.C., and Blackstone, which manages the world's biggest buyout fund.
Tanger expects the transaction will be completed by October and will boost operating profit in the first year. New York-based Compass Advisers LLP advised Tanger on the purchase.
The factory outlets, which will become fully owned by Tanger once the transaction is completed, are located in Rehoboth, Del.; Riviera Centre-Foley, Ala.; Myrtle Beach, S.C.; Park City; Hilton Head, S.C.; Lakes Region-Tilton, N.H.; Lincoln City, Ore.; Westbrook, Conn.; and Tuscola, Ill.
Jennifer McClellan, an outside spokeswoman for Tanger, confirmed the release. Blackstone spokesman John Ford didn't return a call placed after regular business hours.