Real estate investment trust Taubman Centers, Inc. has decided not to move forward with an enclosed regional mall that was slated to be part of the Miami Worldcenter mixed-use, urban development in Miami, Florida.
Instead, Taubman, in conjunction with The Forbes Company and Miami Worldcenter’s master developer, Miami Worldcenter Associates, is now pursuing a high street retail plan that will better utilize the unique characteristics of the site and the market. The 10-block project will include world-class retail, hospitality and residential uses in the center of Miami’s urban core.
As a result of the decision, during the fourth quarter of 2015, Taubman expects to recognize a charge of $11-$12 million for the write off of previously capitalized costs related to predevelopment of the enclosed mall plan. This is expected to reduce 2015 funds from operations and net income allocable to common shareholders per diluted common share by $0.13-$0.14.
“We’ve invested a significant amount of time on the project,” said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers. “Unfortunately, we were unable to structure an enclosed mall program that meets our investment criteria. We’re pleased, however, to work with The Forbes Company and Miami Worldcenter Associates on the potential development of a high street plan that we all believe will provide an outstanding retail experience.”