DMG Gains Management of the CMC
London-based DMG World Media officially took the reins of the California Market Center in Los Angeles this week after successfully refinancing the complex with CDC Mortgage Capital Inc.
The media and trade-show conglomerate, which owns the London tabloid Daily Mail and produces gift and home-furnishings shows around the world, said it plans to continue operating the CMC as a merchandise mart for the apparel, gift and home-furnishings industries.
DMG became involved with the CMC as a leaseholder two years ago. In January, it stepped up its management and equity interests by purchasing a 20 percent stake in the 3 million-square-foot center from the Hertz Group, which remains a majority shareholder according to Hertz owner Judah Hertz.
“This plays to the respective strengths of both owners,” said DMG World Media Chief Executive Officer Mike Cooke in a statement. “Hertz Group is a successful real estate company, and DMG World Media has a track record of successfully managing and operating businesses. We see considerable opportunity in both the apparel and the gift and home-deacute;cor businesses in Southern California— hence this investment in the California Market Center.”
The alliance between DMG and Hertz has also officially put an end to the Dallas Market Center’s management of the CMC. Hertz had hired the DMC management to use its real estate expertise to secure tenants.
“We first got involved two years ago as a master leaseholder, but we saw the CMC as an opportunity to do some unique things in the Southern California marketplace, so we stepped up our involvement and took an equity position in the CMC,” said DMG Executive Vice President Fred Barnes, who has assumed the new position of president of the CMC.
Barnes said DMG will capitalize on the synergy between the apparel industry and the gift and home industries with continued crossmerchandising programs and other plans. DMG co-produces the biannual California Gift Show with George Little Management LLC. The show will take place July 19–22 at the CMC and the Los Angeles Convention Center.
Terms of the CMC’s refinancing were not disclosed, but Barnes said it was necessary because the initial deal had called for a shortterm loan. DMG secured the financing because of its strong corporate profile, which includes international holdings. —Robert McAllister
