Washington Prime Addresses All 2017 Mortgage Debt Maturities with Signing of Several Strategic Deals

Washington Prime Group (WPG) said Thursday that it has addressed all of its 2017 mortgage debt maturities as a result of several strategic transactions, and now has nearly $316 million of net operating income being generated from its unencumbered properties.

On Oct. 4, the company agreed to retain Southern Hills Mall located in Sioux City, Iowa. As part of the deal, the property, along with a $99.7 million mortgage loan secured by the property, will be transferred to the lender. The company expects to recognize a gain of approximately $45 million on debt extinguishment as a result of the transaction.

Also, on Oct. 3, the company extinguished a $40 million mortgage loan secured by Vista Mall located in Harlingen, Texas, upon the property’s transition to the lender. The company expects to recognize approximately $27 million in gain on debt extinguishment related to the deal.

Meanwhile, on Oct. 2, the company repaid $99.6 million of mortgage loan on Westshore Plaza located in Tampla Florida.

The real estate investment trust also said it signed a separate agreement to sell Colonial Park Mall in Harrisburg, Pennsylvania, for a $15 million consideration. It noted that during the nine months ended Sept. 30, it expects to record a non-cash impairment charge of approximately $20.9 million related to the sale.

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