Wednesday, August 16, 2006

mills und kanam in der nyt

im bericht sind fast nur alte facts aufgewärmt. bemerkenswert finde ich den chart der am montag die erholung nach dem immobilienblasen: fire sale / notverkauf bei mills zeigt. alle vorherigen links to miils/kanam und scope sind unter dem link "fire sale"
bereits heute notiert die aktie erneut unter dem level von montag.

That is hardly the case with Meadowlands Xanadu, said Ross Nussbaum, a senior REIT analyst at Banc of America Securities, who calculates that the initial annual rate of return for the project will be 3.9 percent.

I don’t think there’s a buyer on this planet who will pay anywhere near $2 billion for it,” he said."Mills and its financial partner, the KanAm Group, a German investment fund, have already spent nearly $800 million on Xanadu, but only a handful of tenants have been announced so far.

The Star-Ledger of Newark reported Sunday that the company will make public the names of several new entertainment anchors today. "David Fick, a managing director at the financial services firm of Stifel Nicolaus who served as chief financial officer of Mills from 1991 to 1993, said more are to come. “I believe they have a significant amount of leases that have not been announced,” he said.

But he said that most retailers insist on contingencies allowing them to back out if the mall does not attract a critical mass of high-quality tenants. "Mr. Nussbaum has recommended that Mills abandon Xanadu and write off its loss, but he said the company’s agreement with New Jersey might bar it from withdrawing from the project. The state has authorized $350 million in bonds for Xanadu and has committed about $60 million more for road improvements.

"But Mr. Fick, citing both the company’s legal obligations and the merits of the project, said it would not make economic sense for Mills to walk away from Xanadu. “We think that in three to five years the project will be successful,” he said. “It will be a painful learning experience for those involved, including shareholders.”

He predicted that its Cabela sporting goods store alone would draw millions of shoppers. "Well before then, Mr. Fick said, Meadowlands Xanadu and the other projects should be in the hands of an owner other than Mills. “I don’t believe there’s any scenario where it’s reasonable for them to exist as a company,” he said."



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