HONOLULU (HawaiiNewsNow) - Hawaii's biggest mall will have two owners instead of one, with Australian investors paying about $1 billion for a 25% stake in Ala Moana Center.
"Ala Moana Center is one of the largest and most productive shopping malls in the world," said General Growth Properties of Chicago in its Monday announcement that it will sell 25% of the mall to AustralianSuper, the largest industry super fund down under, with $84 billion under management.
The deal values the mall at $5.5 billion. It's structured so the Australians pay $907 million now and $237 million in 2016 after the mall's current development is done. That redevelopment will add 660,000 square feet to the current 2.2 million square feet of retail and office space.
In the redevelopment, the nearby Nordstrom store will move to the new west wing of the mall, which will also be anchored by a Bloomingdale's, the first in the state. The mall already has a Macy's store at the east end.
The two owners could become three: the deal gives General Growth the right to sell another 12.5% to someone else within the next 60 days provided the terms are the same.
General Growth is the nation's second largest owner of malls and also has Hilo's Prince Kuhio Plaza and Whaler's Village in Lahaina.