Taubman Centers, Inc. (NYSE: TCO) and TCBL Consulting Limited today announced a definitive agreement whereby Taubman Asia is acquiring a 90% controlling interest in TCBL, a leading Beijing-based retail real estate consultancy with more than 200 staff across seven offices in mainland China. The new company, Taubman TCBL, will combine the local insights and network of TCBL with the global industry expertise and reputation of Taubman Centers.
Founded in Bloomfield Hills, Michigan, Taubman Centers has been a pioneer and leader in creating extraordinary retail environments for shoppers, retailers, communities, and investors over its 61-year history. Its portfolio of shopping malls is the most productive in the US, with sales per square foot averaging US$600 for the trailing 12 months ended June 30, 2011. Through its Taubman Asia subsidiary, which is based in Hong Kong, it is extending the company's retail real estate expertise to international markets such as China.
Under the terms of the agreement, the total consideration for the transaction is US$24 million (approximately RMB153 million #), subject to final closing adjustments. The transaction has been approved by the board of directors of each company and is expected to close by October 2011, subject to government approval and necessary registration.
After the acquisition, the new company will be named Taubman TCBL with its China headquarters to remain located in Beijing. René Tremblay, president of Taubman Asia, will serve as chairman of Taubman TCBL, while Thomas Tam – currently TCBL's joint managing director – will be appointed president and CEO of Taubman TCBL. Lawrence Wu, current joint managing director of TCBL, will join the Taubman TCBL board. Taubman TCBL will serve as a platform through which Taubman's future investments in mainland China will be made, giving Taubman Asia a 90% ownership interest in these investments.
"China is fast developing into one of the world's leading consumer markets, with exciting and diverse retail opportunities," said Mr. Tremblay. "Our investment in TCBL is a unique opportunity for Taubman to accelerate investment in the Chinese market, creating further value for our retailers and investors.
"Taubman's 61-year heritage and track record in developing and managing high-quality shopping centers, along with TCBL's in-depth knowledge and understanding of the Chinese market, position Taubman TCBL as the preferred partner of choice in retail property development in mainland China. We are optimistic that we will have an announcement in China in the next 12 months," added Mr. Tremblay.
"We welcome this opportunity to partner with Taubman and its commitment to developing and contributing to our rapidly growing business in China," said Mr. Tam. "Our team and clients will benefit greatly from Taubman's global network of retailers, industry knowledge, leadership, and development experience."
