Rouse Co. completes $520 million purchaseRouse Co...

Maryland Watch

June 13, 1996

Rouse Co. completes $520 million purchase

Rouse Co. yesterday completed its $520 million acquisition of the Howard Hughes Corp., a move that will provide the Columbia-based real estate developer with sizable assets in fast-growing markets in the Southwest.

The purchase of the Las Vegas-based Hughes Corp. represents the largest single transaction in Rouse's nearly 50-year history and its largest portfolio acquisition since 1988, when it bought McCormick & Co. Inc.'s real estate arm. In that $550 million transaction, however, partner Teachers Insurance & Annuity Association provided most of the capital.

The Hughes Corp. assets consist of four large-scale business parks in Las Vegas and Los Angeles; a 75 percent stake in Fashion Show Mall in Las Vegas; a 22,500-acre master-planned community known as Summerlin outside Las Vegas; a 1,000-acre tract in Los Angeles being planned for a mixed residential and business community; and other office buildings and developable land.

The $520 million purchase price consists of $50 million in cash and notes, $176.4 million worth of Rouse common stock and the assumption of $294 million in debt.

Pub Date: 6/13/96

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