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US’s Taubman to acquire Chinese retail property consultancy TCBL

US real estate investment trust Taubman Centers, Inc. and China’s TCBL Consulting Limited on Tuesday announced a definitive agreement whereby Taubman Asia is acquiring a 90 percent controlling interest in TCBL, a leading Beijing-based retail real estate consultancy with more than 200 staff across seven offices in mainland China.

Founded in Bloomfield Hills in the US state of Michigan, Taubman Centers’s portfolio of shopping malls is the most productive in the US, with sales per square foot averaging USD600 for the trailing 12 months ended on 30 June 2011. Through its Taubman Asia subsidiary, which is based in Hong Kong, it is extending the company’s retail real estate expertise to international markets such as China.

Under the terms of the agreement, the total consideration for the transaction is USD24 million, subject to final closing adjustments.  The transaction has been approved by the board of directors of each company and is expected to close by October 2011, subject to government approval and necessary registration.

After the acquisition, the new company will be named Taubman TCBL with its China headquarters to remain located in Beijing. René Tremblay, president of Taubman Asia, will serve as chairman of Taubman TCBL, while Thomas Tam – currently TCBL’s joint managing director – will be appointed president and CEO of Taubman TCBL. Lawrence Wu, current joint managing director of TCBL, will join the Taubman TCBL board.  Taubman TCBL will serve as a platform through which Taubman’s future investments in mainland China will be made, giving Taubman Asia a 90 percent ownership interest in these investments.