Regency Centers & Macquarie CountryWide to Acquire CalPERS/First Washi

    Business Editors/Real Estate Writers

    JACKSONVILLE, Fla.--(BUSINESS WIRE)--Feb. 14, 2005--Regency Centers Corporation (NYSE:REG) announced today that it and its joint venture partner, Macquarie CountryWide Trust of Australia, have entered into a definitive agreement to purchase 101 retail centers totaling approximately 13 million square feet from CalPERS/First Washington ("First Washington"). The transaction, valued at approximately $2.74 billion, has been approved by each partners' board of directors and is expected to close in the second quarter.
    The Macquarie CountryWide-Regency venture ("Venture") for this investment will be owned 65% by Macquarie CountryWide and 35% by Regency. The Venture intends to fund the acquisition through a combination of assumed debt, new debt financing and equity. The Venture's target leverage will be 60%, and the debt will initially be comprised of the assumption of approximately $900 million of secured property debt and approximately $800 million of bridge financing provided by affiliates of Wachovia Capital Markets, LLC and JPMorgan Chase Bank. The majority of the existing mortgages are expected to be refinanced within the first six months, which will generate enough proceeds to fully repay the bridge.
    Regency plans to fund its 35% equity, which is approximately $400 million, by drawing on its line of credit and with approximately $275 million of bridge financing provided by Wells Fargo Bank. On a leverage-neutral basis, Regency expects accretion to earnings of 4%-6% in 2005 and long-term accretion of 2%-3%.
    The First Washington portfolio is 96% leased, and located throughout 17 states and the District of Columbia. 48% of the centers are located in the metropolitan Washington D.C./Baltimore area, and Northern and Southern California. 83% of the portfolio is grocery anchored, with nearly 80% of those tenants ranked in the top three in terms of market share in their respective markets. Average household income in the portfolio is approximately $82,000 and population density within three miles of the centers averages greater than 110,000 people.
    Subsequent to the purchase, Regency will own or manage 392 retail centers totaling over 49 million square feet of gross leasable area (GLA) located in 26 states.
    "Regency and CountryWide are excited about this unique and terrific opportunity to acquire an outstanding portfolio of infill centers with excellent prospects for growth. The quality of the portfolio in terms of top markets, grocer strength and especially demographics, augments Regency's already exceptional portfolio. The combination of population density and household income makes the First Washington/CalPERS portfolio one of the highest ranking in terms of buying power. The acquisition also allows us to profitably expand into new markets such as suburbs of New York City and Minneapolis and enhance our presence in the key target markets of Chicago, Philadelphia and Washington D.C., while substantially growing our joint venture program," said Martin E. Stein, Jr., Chairman and Chief Executive Officer of Regency Centers.
    Wachovia Capital Markets, J.P. Morgan Securities and Citigroup Global Markets Inc. acted as financial advisors to the Macquarie CountryWide/Regency joint venture for this transaction.

    Conference Call

    In conjunction with this announcement, Regency will be hosting a conference call on Tuesday, February 15, 2005 at 10:00 a.m. EST. The dial in number is 800-967-7185. International callers may dial 719-457-2634. The call will also be broadcast live over the internet on the Company's web site http://www.RegencyCenters.com. If you are unable to participate during the live webcast, the call will also be archived on the web site. The replay will be available for two weeks by dialing 888-203-1112 pass code 4248776. International callers may hear the replay by dialing 719-457-0820 and using pass code 4248776.

    Portfolio Details

---------------------------------------------------------------------- Property MSA GLA Anchor ---------------------------------------------------------------------- California (CA) properties 1 Brea Marketplace Los Angeles 298,193 Toys "R" Us 2 Granada Village Shopping Los Angeles 224,725 Ralphs Center 3 Laguna Niguel Plaza Los Angeles 42,124 Albertson's 4 Lake Forest Village Los Angeles 119,706 Albertson's 5 Silverado Plaza Napa 84,916 Nob Hill Foods 6 Twin Oaks Shopping Center Oxnard 98,399 Ralphs 8 Auburn Village Sacramento 133,944 Bel Air Market 9 Stanford Ranch Village Sacramento 89,874 Bel Air Market 10 Navajo Shopping Center San Diego 102,138 Albertson's 11 Point Loma Plaza San Diego 212,905 Vons 12 Rancho San Diego Village San Diego 152,895 Vons 13 Bayhill Shopping Center San Francisco 121,846 Mollie Stone's Market 14 Pleasant Hill Shopping San Francisco 233,678 Target Center 15 Ygnacio Plaza San Francisco 109,429 Albertson's 16 Mariposa Shopping Center San Jose 126,658 Safeway 17 Snell & Branham Plaza San Jose 99,349 Safeway 18 Five Points Shopping Santa Barbara 144,553 Albertson's Center ----------- California subtotal 2,395,332 ----------------------------------------------------------------------

---------------------------------------------------------------------- Property MSA GLA Anchor ---------------------------------------------------------------------- Colorado (CO) properties 19 Arapahoe Village Boulder 159,237 Safeway 20 Applewood Shopping Center Denver 375,622 King Soopers 21 Cherrywood Square Shopping Denver 86,161 King Soopers Center 22 Ralston Square Shopping Denver 82,750 King Soopers Center ----------- Colorado subtotal 703,770 ----------------------------------------------------------------------

Connecticut (CT) property 23 Corbin's Corner Hartford 177,207 Toys "R" Us ----------- Best Buy Connecticut subtotal 177,207 ----------------------------------------------------------------------

Delaware (DE) properties 24 First State Plaza Philadelphia 164,576 Shop Rite 25 Newark Shopping Center Philadelphia 184,017 Dollar Express 26 Shoppes of Graylyn Philadelphia 66,676 Rite Aid ----------- Delaware subtotal 415,269 ----------------------------------------------------------------------

District of Columbia (DC) property 27 Spring Valley Shopping Washington, DC 16,834 CVS/pharmacy Center ----------- District of Columbia subtotal 16,834 ----------------------------------------------------------------------

Florida (FL) property 28 Village Commons Miami 169,053 Publix ----------- Florida subtotal 169,053 ----------------------------------------------------------------------

Illinois (IL) properties 29 Brentwood Commons Chicago 125,585 Dominick's 30 Civic Center Plaza Chicago 265,015 Dominick's 32 Mallard Creek Shopping Chicago 143,574 Dominick's Center 33 McHenry Commons Shopping Chicago 100,526 Dominick's Center 34 Riverside Square & River's Chicago 169,437 Dominick's Edge Plaza 35 Riverview Plaza Chicago 139,262 Dominick's 36 Stonebrook Plaza Shopping Chicago 95,826 Dominick's Center 37 The Oaks Shopping Center Chicago 135,084 Dominick's ----------- Illinois subtotal 1,174,309 ----------------------------------------------------------------------

---------------------------------------------------------------------- Property MSA GLA Anchor ---------------------------------------------------------------------- Indiana (IN) properties 38 Willow Lake Shopping Indianapolis 85,923 Kroger Center 39 Willow Lake West Shopping Indianapolis 52,961 Trader Joe's Center ----------- Indiana subtotal 138,884 ----------------------------------------------------------------------

Maryland (MD) properties 40 Elkridge Corners Shopping Baltimore 73,529 Super Fresh Center 41 Festival at Woodholme Baltimore 81,027 Balducci's 42 Northway Shopping Center Baltimore 98,016 Shoppers Food Warehouse 43 Parkville Shopping Center Baltimore 162,433 Super Fresh 44 Southside Marketplace Baltimore 125,147 Shoppers Food Warehouse 45 Valley Centre Baltimore 252,314 T.J. Maxx 46 Bowie Plaza Washington, DC 104,037 Giant Food 47 Clinton Square Shopping Washington, DC 18,961 N/A Center 48 Cloppers Mill Village Washington, DC 137,035 Shopper's Shopping Center Club 49 Firstfield Shopping Center Washington, DC 22,328 N/A 50 Goshen Plaza Washington, DC 45,654 CVS/pharmacy 51 Mitchellville Plaza Washington, DC 156,124 Food Lion 52 Penn Station Shopping Washington, DC 244,816 Safeway Center 53 Rosecroft Shopping Center Washington, DC 119,010 Food Lion 54 Takoma Park Shopping Washington, DC 108,168 Shoppers Center Food Warehouse 55 Watkins Park Plaza Washington, DC 113,443 Safeway 56 Woodmoor Shopping Center Washington, DC 65,791 CVS/pharmacy ----------- Maryland subtotal 1,927,833 ----------------------------------------------------------------------

Minnesota (MN) properties 57 Colonial Square Minneapolis-St. 93,200 Lunds Paul 58 Rockford Road Plaza Minneapolis-St. 207,897 Rainbow Foods Paul ----------- Minnesota subtotal 301,097 ----------------------------------------------------------------------

New Jersey (NJ) properties 59 Edgewater Commons New York 423,620 Pathmark 60 Plaza Square New York 103,842 Shop Rite 61 Westmont Shopping Center Philadelphia 52,640 Acme Market ----------- New Jersey subtotal 580,102 ----------------------------------------------------------------------

North Carolina (NC) property 62 Shoppes of Kildaire Raleigh 148,204 Winn-Dixie ----------- North Carolina subtotal 148,204 ----------------------------------------------------------------------

---------------------------------------------------------------------- Property MSA GLA Anchor ---------------------------------------------------------------------- Oregon (OR) properties 63 Greenway Town Center Portland 93,100 Lambs Thriftway ----------- Oregon subtotal 93,100 ----------------------------------------------------------------------

Pennsylvania (PA) properties 64 Allen Street Shopping Allentown 46,420 Ahart's Center Market 65 Stefko Boulevard Shopping Allentown 133,824 Valley Farm Center Market 66 City Avenue Shopping Philadelphia 156,722 Ross Dress Center for Less 67 Mayfair Shopping Center Philadelphia 112,275 Shop 'N Bag 68 Mercer Square Shopping Philadelphia 91,400 Genuardi's Center 69 Newtown Square Shopping Philadelphia 146,893 Acme Market Center 70 Towamencin Village Square Philadelphia 122,916 Genuardi's 71 Warwick Square Shopping Philadelphia 93,269 Genuardi's Center 72 Kenhorst Plaza Reading 161,424 Redner's 73 Colonial Square York 28,640 Minnich's Pharmacy ----------- Pennsylvania subtotal 1,093,783 ----------------------------------------------------------------------

Texas (TX) properties 74 First Colony Marketplace Houston 111,675 Randalls 75 Memorial Collection Houston 103,382 Randalls Shopping Center 76 Weslayan Plaza East & West Houston 357,250 Randalls Shopping Center 77 Westheimer Marketplace Houston 135,936 Randalls 78 Woodway Collection Houston 111,005 Randalls ----------- Texas subtotal 819,248 ----------------------------------------------------------------------

Virginia (VA) properties 79 Gayton Crossing Richmond 156,915 Ukrop's 80 Glen Lea Centre Richmond 78,493 Winn-Dixie 81 Hanover Village Shopping Richmond 96,146 Rack 'n Sack Center 82 Laburnum Park Shopping Richmond 64,993 Ukrop's Center 83 Laburnum Square Shopping Richmond 109,405 Kroger Center 84 Village Shopping Center Richmond 111,177 Ukrop's 85 601 King Street Washington, DC 8,499 N/A 86 Ashburn Farm Village Washington, DC 88,917 Shoppers Center Food Warehouse 87 Brafferton Center Washington, DC 94,731 Giant Food 88 Centre Ridge Marketplace Washington, DC 104,154 Shoppers Food Warehouse 89 Festival at Manchester Washington, DC 165,568 Shoppers Lakes Food Warehouse 90 Fox Mill Shopping Center Washington, DC 103,269 Giant Food 91 Greenbriar Town Center Washington, DC 345,935 Giant Food 92 Kamp Washington Shopping Washington, DC 71,825 Borders Center Books 93 Kings Park Shopping Center Washington, DC 77,202 Giant Food 94 Saratoga Shopping Center Washington, DC 101,588 Giant Food 95 Town Center at Sterling Washington, DC 190,069 Giant Food Shopping Center 96 Willston Centre I Washington, DC 105,376 CVS/pharmacy 97 Willston Centre II Washington, DC 127,449 Safeway ----------- Virginia subtotal 2,201,711 ----------------------------------------------------------------------

---------------------------------------------------------------------- Property MSA GLA Anchor ---------------------------------------------------------------------- Washington (WA) properties 98 Aurora Marketplace Seattle 106,921 Safeway 99 Eastgate Plaza Seattle 78,230 Albertson's 100 Overlake Fashion Plaza Seattle 80,555 Marshalls ----------- Washington subtotal 265,706 ----------------------------------------------------------------------

Wisconsin (WI) properties 101 Cudahy Center Shopping Milwaukee 103,254 Pick 'n Save Center 102 Racine Centre Shopping Milwaukee 135,827 Piggly Center Wiggly 103 Whitnall Square Shopping Milwaukee 133,301 Pick 'n Save Center ----------- Wisconsin subtotal 372,382 ----------------------------------------------------------------------

---------------------------------------------------------------------- Total 12,993,824 ----------------------------------------------------------------------

    In addition to historical information, the information in this press release contains forward-looking statements under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets in which Regency operates, management's beliefs and assumptions. Forward-looking statements are not guarantees of future performance and involve certain known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, changes in national and local economic conditions, financial difficulties of tenants, competitive market conditions including pricing of acquisitions and sales of properties and out parcels, changes in expected leasing activity and market rents, timing of acquisitions, development starts and sales of properties and out parcels, weather, obtaining governmental approvals and meeting development schedules.
    During the quarter, Regency's corporate representatives may reiterate these forward-looking statements during private meetings with investors, investment analysts, the media and others. At the same time, Regency will keep this information publicly available on its web site http://www.regencycenters.com.

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CONTACT: Regency Centers Corporation, Jacksonville Lisa Palmer, 904-598-7636 http://www.RegencyCenters.com

KEYWORD: FLORIDA INDUSTRY KEYWORD: REAL ESTATE BUILDING/CONSTRUCTION SUPERMARKETS RETAIL MERGERS/ACQ SOURCE: Regency Centers Corporation

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