South Street Seaport

General Growth Properties, the bankrupt owner of U.S. shopping malls, including the South Street Seaport, has filed its proposed reorganization plan with the U.S. Bankruptcy Court for t [more]

General Growth Properties, owner of the South Street Seaport in Lower Manhattan, will file its Chapter 11 reorganization plan on or around July 9, Crain’s reported. General Growth asked for one extension until Oct. 18 to file the plan and another extension until Dec. 16 to solicit acceptances of any plan. The extra time would allow them to explore all financing options. The company, which also owns about 200 shopping malls nationwide, filed for Chapter 11 last April, the biggest real estate bankruptcy case in U.S. history. [Crain's]

[more]

General Growth Properties, owner of the South Street Seaport in Lower Manhattan, will file its Chapter 11 reorganization plan on or around July 9, Crain’s reported. General Growth asked for one extension until Oct. 18 to file the plan and another extension until Dec. 16 to solicit acceptances of any plan. The extra time would allow them to explore all financing options. The company, which also owns about 200 shopping malls nationwide, filed for Chapter 11 last April, the biggest real estate bankruptcy case in U.S. history. [Crain's]

[more]

Elizabeth Berger

A 28-year resident of Lower Manhattan who has worked in city government for years, Elizabeth Berger now advocates for the area’s economic well-being as head of the country’s biggest business improvement district. While the neighborhood is clearly more vibrant than in the early 1980s, lately it has struggled. Construction at the World Trade Center site is still years behind schedule. Office vacancy rates will hit 14 percent next year because financial companies have shuttered or moved. And as The Real Deal reported in March, 4 of the 11 new Manhattan developments with the most foreclosure filings are located below Canal Street. Plus, sales activity in the Financial District, which makes up most of the Downtown Alliance, is still sluggish compared with other Manhattan neighborhoods. In an interview with The Real Deal, Berger explained how to fill empty cubicles, why Lower Manhattan is a better corporate address than Midtown and the benefits of a live-work district. [more]

Even in bankruptcy, General Growth Properties is feeling pressure from New York City officials to pony up $500,000 in back rent it allegedly owes for South Street Seaport, according to the Wall Street Journal. The city has filed a court claim demanding payment, but General Growth is disputing the city’s stance for as-of-yet unknown reasons and plans to file its response to bankruptcy court soon. [more]

Still hoping that bankrupt mall owner General Growth Properties will have a change of heart, rival Simon Property Group has upped its takeover plan by $1.1 billion and added four financial backers to its proposal. General Growth, which balked at Simon’s $10 billion February buyout offer, has since backed a proposal by Brookfield Asset Management. The additional investment by Simon, which said last week it would match the terms of Brookfield’s proposal, comes on top of the $2.5 billion the company has already pledged, plus $1 billion from New York hedge fund Paulson & Co. ING Clarion Real Estate Securities, Taconic Capital Advisors, Oak Hill Advisors and Deutsche Bank AG’s RREEF unit will also join the plan. Critics have said a Simon takeover would raise antitrust issues. “Would Pepsi allow Coke to become its largest shareholder?” asked Cryus Madon, Brookfield’s senior managing partner. CEO David Simon is reportedly scheduled to meet with General Growth officials today in Chicago. [Bloomberg]

City officials are throwing their support behind a proposed regional fresh food market for the South Street Seaport, according to Crain’s. The food emporium, which would move into the former Fulton Fish Market space that has remained vacant since the market moved to the South Bronx in 2005, has generated enthusiasm among community groups and City Council Speaker Christine Quinn, who said it would help economic development in the area. Julie Menin, chair of Community Board 1, said it would be a major boon to the area as well. “Lower Manhattan is the fastest growing community in New York City, and there is a pressing need to bolster our neighborhood’s infrastructure, services and amenities to accommodate this rapid growth,” Menin said.

The South Street Seaport could be under new management if General Growth Properties’ bankruptcy exit plan with Brookfield Asset Management comes to fruition. General Growth, which has announced an agreement to reorganize with the help of $6.55 billion from Brookfield, Pershing Square Capital Management and Fairholme Capital Management, plus an additional $1.5 billion debt issuance, would split in two under the plan. The deal amounts to $15 a share, and is subject to bankruptcy court approval. Shareholders would also get 34 percent ownership in the reorganized General Growth Properties, which would focus on shopping malls, and 86 percent equity in its new spin off, General Growth Opportunities, which would own real estate properties like the South Street Seaport, the company said. The company is still exploring other deal options as it has until July 15 to finalize the terms of its reorganization, said Adam Metz, General Growth’s CEO. Those include a $10 million proposal from competitor Simon Property Group, which has been soundly rejected, though Simon is reportedly prepping another, higher offer. [Bloomberg]

Simon Property Group is reportedly ready to up the ante in its bid to buy out rival shopping mall owner General Growth Properties over its competitors. General Growth, which owns the South Street Seaport, filed for the biggest real estate bankruptcy in U.S. history last year with $27 billion in debt. Simon had offered
$10 billion, or $9 per share, to buy out its bankrupt rival last month, but General Growth reportedly balked at what it said was a low-ball offer. Meanwhile, General Growth has praised another $2.5 billion offer from Brookfield Asset Management
that amounts to $15 per share. The deal, which is pending bankruptcy court approval, would also split the company in two and give Brookfield a 30 percent stake. Simon’s new offer for more than $15 per share could come as early as this week, the Associated Press reported. [AP via Crain’s]

General Growth Properties, one of the largest mall property managers in the country and owner of the South Street Seaport retail area, is planning to launch an initial public offering on the New York Stock Exchange Friday, according to the Associated Press. GGP had filed for bankruptcy protection last April — the largest real estate bankruptcy case ever recorded in the U.S. — and has recently been the target of investment and buyout offers from other companies. Simon Property Group offered to buy the company outright in February for $10 billion, but was turned down. Canadian group Brookfield Asset Management, however, saw its $2.5 billion investment offer last week accepted, a move that allowed GGP to exit Chapter 11 protection.