Feldman Mall Properties is planning to acquire $175 million of new malls in 2005 and will fund this activity with the remaining $124.8 million of proceeds from its initial public offering, which was completed in December. The Great Neck, N.Y.-based retail REIT also is considering obtaining a credit line, said Thomas Wirth, cfo.
The REIT, with offices in New York and Phoenix, looks for undervalued mall assets in great locations with strong and growing demographics. Feldman has a small credit line that is uses for working capital but would consider a larger credit facility down the road depending on the acquisition climate. Wirth emphasized that plans are not in motion yet as ample proceeds remain available, so a size or possible lender has not been determined.