July 25, 2003

NEW YORK, (Reuters) - CBL & Associates Properties Inc. , the third-largest U.S. mall real estate investment trust, on Friday said it agreed to buy four regional malls from partnerships managed by Faison Enterprises Inc. for $340 million.

CBL said the price includes cash and the assumption of $170 million of debt with an average 7.71 percent interest rate. The Chattanooga, Tennessee-based company said it expects to close at least two separate transactions for the malls starting this quarter. Faison is based in Charlotte, North Carolina.

The malls include the 1,054,034-square-foot Cross Creek Mall in Fayetteville, North Carolina; the 787,255-square-foot Valley View Mall in Roanoke, Virginia; the 784,775-square-foot River Ridge Mall in Lynchburg, Virginia, and the 626,806-square-foot Southpark Mall in Colonial Heights, Virginia.

CBL said each mall is at least 82.1 percent occupied and includes such large retail anchors as Hecht's, J.C. Penney and Sears. The company runs 55 enclosed malls in its portfolio of 161 properties in 25 states.

Charles Lebovitz, CBL's chairman and chief executive, in a press statement said the properties looked attractive because they have "dominant franchises in middle markets, future expansion and leasing opportunities, strong anchor lineups and mall sales averaging $319 per square foot."

CBL on Thursday said second-quarter net profit rose 11.2 percent from a year earlier to $21 million, or 68 cents per share, as occupancy rates rose.