August 23, 2006
The Mills Corporation announces agreement with Colony Capital Acquisitions, LLC and Kan Am USA with respect to completion of giant mall project.
On August 22, Willkie client The Mills Corporation announced that it has signed a non-binding letter of intent with Colony Capital Acquisitions, LLC and Kan Am USA Management XXII Limited Partnership under which Colony would arrange for construction financing for the Meadowlands Xanadu development project and make a significant equity infusion into the joint venture for the project, which currently includes Mills and Kan Am. Meadowlands Xanadu, located in Northern New Jersey, is a planned sports, leisure, shopping and family entertainment destination. The recapitalized partnership will continue its existing obligations to the New Jersey Sports and Exposition Authority. Mills will become a limited partner in the project with a total partner capital account of approximately $485 million. Colony will provide up to $500 million of equity financing and arrange for construction loan financing, which will fund the remaining balance of the $2 billion project. Kan Am has been Mills' partner on the project since its inception in 1997. The deal was handled by Willkie partner Eugene Pinover and associate Andrew Wurzburger, and Mills general counsel Mark C. Dorigan.
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