Boston, MA 05/14/2014 (wallstreetpr) – Taubman Centers, Inc. (NYSE:TCO) is facing opposition for its apartment project in Stony Point. A neighborhood association has moved to court to seek an injunction for the project claiming that the company is likely to violate an agreement that it committed to only develop office and retail properties in the area.
A 282-unit apartment complex is at the center of a lawsuit that first seeks to halt a land transfer between Taubman Centers, Inc. (NYSE:TCO) and Wood Partners, a developer based in Atlanta.
Huguenot Farms Area Association (HFAA), the association of the Southside residents that represent about 250 members, cites a 13-year old agreement that Taubman Centers, Inc. (NYSE:TCO) signed to only build office and retail spaces near Stony Point mall.
As such, the move to sell a 27-acre parcel to Wood Partners for the development of an apartment complex signal a step backward from the agreement and the residents are not amused.
However, the planned $40 million apartment complex already has the approval of the Planning Commission and the City Council of Richmond. In any case, the land development plan in Stony Point area has undergone several tweaks. Nonetheless, the residents believe they have a good case that will frustrate the apartment project being fronted by Taubman Centers, Inc. (NYSE:TCO).
Portfolio rebalancing
Taubman Centers, Inc. (NYSE:TCO) is among the real estate investment trusts that are actively rebalancing their portfolio under the real estate buzz. The company is offloading assets in non-core markets and using the funds to acquire or develop properties in promising markets.
The strength in the tech sector has led to a big demand for office, residential and shopping center spaces. Prices have also improved, and Taubman Centers, Inc. (NYSE:TCO) and its peers seek to enrich their property portfolio to take advantage of the market opportunities as they come.
Financial performance
Taubman Centers, Inc. (NYSE:TCO) last reported earnings on April 24, during which the company realized earnings of 90 cents per share, matching consensus estimate. Revenue in the quarter was $174.78 million, compared with $175.54 million consensus estimate.
