CBL Properties Provides Update on Sears and Anchor Redevelopment Program

CHATTANOOGA, Tenn.–(BUSINESS WIRE)–CBL Properties (NYSE: CBL) today provided an update on its redevelopment
efforts related to Sears stores in its portfolio.

“We have been preparing for an eventual Sears bankruptcy since 2013,
when we purchased two Sears locations and transformed them into dining,
retail and entertainment destinations,” said Stephen Lebovitz, chief
executive officer. “The Sears stores in our markets are well-located
with excellent visibility, access and infrastructure. As a result, we
have been able to attract high quality replacement users and new
concepts that had not previously considered a mall environment.
Additionally, we are able to pursue a number of non-traditional uses
through partnerships. These other developers, be it multi-family, hotel
or other use, recognize the immense value of these locations and are
coming to us to take advantage of the great real estate that’s becoming
available.”

Yesterday Sears announced anticipated store closures as part of its
Chapter 11 bankruptcy filing. CBL stores on the closure list include
Hamilton Place in Chattanooga, TN; Jefferson Mall in Louisville, KY;
Cross Creek Mall in Fayetteville, NC; Imperial Valley in El Centro, CA
(location owned by a third party); Honey Creek Mall in Terre Haute, IN;
and Governor’s Square Mall in Clarksville, TN (property owned in a 50/50
joint venture).

CBL proactively purchased the Sears locations at Hamilton Place,
Jefferson Mall and Cross Creek in 2017 and has redevelopment plans in
process for all three locations. In anticipation of a bankruptcy or
additional closures by Sears, CBL has been actively marketing locations
to replacement users. CBL has leases executed, out-for-signature or
under negotiation for a majority of the locations leased by Sears in its
portfolio. Additionally, CBL is pursuing opportunities to utilize ground
leases, outparcel land sales and joint ventures to enhance returns while
limiting the required investment and will also use construction loans
for select projects to reduce the equity commitment.

Over the last three years, more than 35 redevelopment projects have been
completed or are underway in the CBL portfolio, including nearly two
dozen anchor store redevelopments, furthering the Company’s vision of
creating a portfolio of diverse suburban town centers. Current projects
include:

  • Brookfield Square, Brookfield, WI – former Sears is being transformed
    into an entertainment and dining destination with Marcus Theaters,
    Whirlyball entertainment center, a fitness operator and restaurants. A
    portion of the site was sold for development of a hotel and conference
    center.
  • Jefferson Mall, Louisville, KY – Round 1 will open in a former Macy’s
    location later this year.
  • York Galleria, York, PA – Earlier this year, Marshalls joined H&M &
    Gold’s Gym in the former JCPenney location.
  • Eastland Mall, Forsyth, IL – H&M, Outback and Planet Fitness are
    opening in the former JCPenney location.

Through these redevelopment efforts as well as dispositions of select
assets, CBL has reduced its exposure to Sears and other underperforming
anchors significantly. At year-end 2015, CBL had 53 Sears operating in
its portfolio. With the planned closures announced yesterday, by
year-end 2018 CBL anticipates 21 operating Sears stores in its core
portfolio, including five locations leased by Sears and 16 owned by
Sears or third parties.

About CBL Properties

Headquartered in Chattanooga, TN, CBL Properties owns and manages a
national portfolio of market-dominant properties located in dynamic and
growing communities. CBL’s portfolio is comprised of 114 properties
totaling 71.9 million square feet across 26 states, including 73
high-quality enclosed, outlet and open-air retail centers and 12
properties managed for third parties. CBL continuously strengthens its
company and portfolio through active management, aggressive leasing and
profitable reinvestment in its properties. For more information visit cblproperties.com.

Information included herein contains “forward-looking statements”
within the meaning of the federal securities laws.
Such
statements are inherently subject to risks and uncertainties, many of
which cannot be predicted with accuracy and some of which might not even
be anticipated.
Future events and actual events, financial and
otherwise, may differ materially from the events and results discussed
in the forward-looking statements.
The reader is directed to the
Company’s various filings with the Securities and Exchange Commission,
including without limitation the Company’s Annual Report on Form 10-K
and the “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” included therein, for a discussion of such risks
and uncertainties.

Contacts

CBL Properties
Investor Contact:
Katie Reinsmidt, 423-490-8301
Executive
Vice President & Chief Investment Officer
Katie.Reinsmidt@cblproperties.com
or
Media
Contact:
Stacey Keating, 423-490-8361
Director of Public
Relations & Corporate Communications
Stacey.Keating@cblproperties.com

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