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Commercial Real Estate

Is Your Local Mall For Sale?

$10 Billion Offer Rejected

Mall interior ag postSimon Properties Group Inc. based in Indianapolis and already the nation’s largest shopping-mall owner, made a $10 billion bid to acquire rival General Growth Properties Inc., which is seeking to emerge from bankruptcy proceedings, in a takeover effort that could alter the retail landscape in hundreds of American communities.  If the bid is successful Simon would own 550 malls in the U.S. or approximately one third of the market, and control half of the countries best performing malls in terms of sales.

General Growth Properties is currently in bankruptcy, buried under $7 billion in debt after years of easy credit fueled its massive expansion efforts.  Simon isn’t the only one bidding for general Growth Properties.  Canadian based Brookfield Asset Management has also been in negotiations The Brookfield deal would let General Growth Properties remain a separate company.  Brookfield has already given $1 billion to General Growth Properties to alleviate debt.  If Brookfield infuses more capital and General Growth Properties accepts, this could help General Growth Properties emerge from bankruptcy even sooner.  They can still choose to go on their own by making agreements with creditors.

The Simon offer was met with a friendly No Thank You from CEO Adam Metz of General Growth Properties stating yesterday via a carefully worded letter, that the Simon bid was ”not sufficient to preempt the process we are undertaking to explore all avenues to emerge from Chapter 11.”

Shares in General Growth rallied almost 28 percent Tuesday, to $12.02, above the Simon offer valued at about $9 per share, as investors anticipated a higher offer. The shares had fallen as low as 32 cents.  Investors and shareholder think the share may be worth as much as $24 per share.

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Broker/Owner in Lafayette, IN, whose passion is Commercial Real Estate with focus on Technology, Social Media, and Networking.

15 Comments

15 Comments

  1. Duke Long

    February 18, 2010 at 11:49 am

    Update on the Possible Simon Bid. Great article from the Wall Street Journal.
    https://online.wsj.com/article/SB10001424052748703444804575071611963839430.html?mod=WSJ_Real+Estate_RIGHTTopCarousel

  2. Duke Long

    February 18, 2010 at 3:20 pm

    And General Growth Properties Responds
    https://www.ggp.com/Company/Pressreleases.aspx?prid=488

  3. Duke Long

    February 18, 2010 at 4:16 pm

    And Now a new possible player with a full explanation !!
    https://retailtrafficmag.com/news/simon_offers_10billion_for_ggp_02162010/

  4. Jim Olenbush

    February 18, 2010 at 6:16 pm

    General Growth Properties has a mall here in Austin, and it has faced all sorts of trouble. (well documented in this article)
    https://www.austinchronicle.com/gyrobase/Issue/story?oid=oid:756264

    Major retailers moved away… to Simon owned properties nearby. I can see why they are having problems!

    • Duke Long

      February 18, 2010 at 7:46 pm

      Thanks for your comments and input.

  5. Duke Long

    February 19, 2010 at 1:28 pm

  6. Duke Long

    February 22, 2010 at 10:14 am

    Update:GGP gong to the public markets for money?
    https://www.investors.com/NewsAndAnalysis/Article.aspx?id=521555

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