Centro NP Residual Holding forms JV with Inland American

New York City -- Centro NP Residual Holding LLC said Friday it has sold a portion of its interest in 25 shopping centers and formed a joint venture with Inland American CP Investment, LLC, a wholly owned subsidiary of Inland American Real Estate Trust.

The new joint venture has secured $310 million of term loans with J.P. Morgan and Goldman Sachs, which mature in 10 years and are secured by assets within the joint venture.

According to Centro, proceeds from the sale of the shopping center interests and new term loans will be utilized to fully repay approximately $424 million of Centro NP Residual LLC debt, which was to mature on December 9, 2010. Centro, as the managing member, will be responsible for providing management and leasing services and will continue to receive management fees.

“Centro is pleased with the outcome of the refinancing and structure of the joint venture with Inland American and looks forward to the continued leverage our national platform provides through value add leasing and management of the portfolio,” said Michael Carroll, CEO and president, Centro US.