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High Point Showroom Deal Merges Buildings with World Market Center
May 2,
2011 by in UnCategorized 
By Home Furnishings Business in Acquisition on May 3, 2011
Following months of speculation surrounding the sale of three of the largest multi-tenant properties at the
High Point Market, officials announced the launch of the worlds largest network of premium home furnishings, gift and home décor showroom and exhibition space today.
According to Robert Maricich, who will serve as CEO of the the newly formed International Market Centers, L.P. (IMC), the company has invested about $1 billion in an incredibly complex transaction to unite iconic showroom assets in High Point, N.C., and Las Vegas, with the goal to create an effective, efficient and compelling world-class business-to-business platform for both buyers and sellers.
Maricich characterized the deal as the dawn of a new age in collaboration and cooperation that will make the whole industry stronger, as well as the Market itself. He described the High Point Market as the soul of the community, a treasure, and an asset for the entire State of North Carolina, and added that IMC will seek to be great corporate citizens in building a great High Point Market.
IMCs portfolio, initially comprised of 13 buildings and encompassing more than 10.6 million gross square feet, includes the International Home Furnishings Center and the Market Square Complex (consisting of eight properties) in High Point, as well as all of the World Market Center buildings in Las Vegas. Through a series of transactions, all assets in the portfolio have been recapitalized with significant equity investments, providing for long-term stability and creating a growth platform for the industry. Financial details of the transactions were not disclosed.
IMC has also reached agreement to acquire five additional buildings encompassing nearly one million gross square feet including, Showplace, Showplace West and three North Hamilton Street showroom venues in High Point. Upon the closing of this transaction, IMC will own and operate a total of 18 showroom buildings spanning 11.5 million square feet. Closing is expected within 60 days.
IMC is majority owned by funds managed by Bain Capital Partners and a subsidiary of certain investment funds managed by Oaktree Capital Management, L.P. Related Companies, Bassett Furniture Inds. (NASDAQ: BSET) and affiliates of Network World Market Center are also investors in the company.
The company will operate from joint headquarters in High Point and Las Vegas. Rounding out the senior management team is Tom Mitchell, who will serve as president of home furnishings.
I believe with all my heart that the resources we bring to High Point and Las Vegas will invigorate the respective Markets and our industry by attracting new buyers and laying the foundation for our future, Mitchell stated. By bringing business partners together four times a year with new product, we will spur order writing on a scale that will deliver bottom line results for our tenants and fill retailers showrooms with the latest products.
Georgia Davis will lead the strategically critical gift industry initiative on an interim basis while a president of gift & home décor is identified. (Before joining World Market Center in 2007 as a consultant for its gift initiative, Davis was executive vice president of the Dallas Market Center for 20 years.)
Katherine Venezia will serve as chief financial officer. Venezia has been at World Market Center since 2004 and oversees day-to-day financial matters. Previously, Venezia was manager in corporate accounting and controller of the New York Development division of Related Companies.
Randy Eller will serve as IMCs chief integration officer and will be responsible for the transition and integration of the acquired companies into one effective, integrated operation.
The firm has engaged Price Waterhouse Coopers to assist the executive team in the strategic planning process over the next four to six months.
We have created a company that will deliver the most successful market experience for buyers and exhibitors from anywhere in the world, said Maricich. We are confident in the future of this industry and the unprecedented platform that the combination of High Point and Las Vegas Markets presents. We are bringing together the best minds in the business, the most coveted properties and the deep financial and operating resources of leading firms who share our optimism about our industrys growth prospects.
This significant and strategic investment creates the worlds greatest marketing stage for the home furnishings industry, said Phil Loughlin, managing director at Bain Capital. We are excited to support the industrys foremost leadership team as they enable ever more productive interactions between home furnishings suppliers and buyers.
International Market Centers will create a seamless market experience on both coasts and offer significant cross-category business opportunities, said Scott Graves, managing director at Oaktree. The companys plans include attracting additional traffic from international buyers, enhancing marketing efforts and creating new distribution and sales channels for exhibitors.
International Market Centers strong capital position enables it to invest in and vastly expand the strategically significant gift and home décor category, said Eller. We are uniquely positioned to tailor offerings to the thousands of buyers and sellers who are anxious to access world-class trade facilities and the most highly sought-after new products from domestic and international sources.
Davis added, This clearly positions Las Vegas as the pre-eminent gift and home décor market west of the Mississippi.
Upon closing all of the transactions, International Market Centers will own and operate the following facilities:
- Building A, World Market Center Las Vegas
- Building B, World Market Center Las Vegas
- Building C, World Market Center Las Vegas
- World Pavilions, World Market Center Las Vegas
- International Home Furnishings Center (IHFC), High Point (comprised of the Hamilton, Green, Commerce, Wrenn, Design Center and Main Wings)
- Historic Market Square, High Point
- Market Square Tower, High Point
- Suites at Market Square, High Point
- Plaza Suites, High Point
- Furniture Plaza, High Point
- National Furniture Mart, High Point
- Hamilton Market, High Point
- 300 South Main, High Point
- Showplace, High Point
- Showplace West, High Point
- 200 N. Hamilton, High Point
- 320 N. Hamilton, High Point
- 330 N. Hamilton, High Point