11/17/2014 05:07 EST | Updated 01/17/2015 05:59 EST

Teacher's sells stake in five U.S. malls to joint venture partner

TORONTO - The Ontario Teachers' Pension Plan has signed an agreement to sell its minority stake in five regional malls in the United States to its joint venture partner in a deal valued at US$1.89 billion.

Under the agreement, the Macerich Co. will acquire the pension fund's 49 per cent stake in the malls for $1.22 billion in Macerich shares and assume $673 million in debt.

The shares, based on a price of $71 per share, represent a 10.9 per cent stake in Macerich.

Macerich owns interests in 52 regional shopping centres.