Howard Hughes’ (slightly less) big Seaport project approved
Shopping mall giant Simon Property Group has offered to buy out bankrupt General Growth Properties for more than $10 billion, or $9 per share, the Indianapolis-based company announced this morning. Its offer, which includes roughly $9 billion in cash, would provide for a full cash recovery plus interest and dividends for Chicago-based General Growth’s unsecured creditors, amounting to $7 billion. Shareholders would emerge with more than $9 per share, $6 of which would be in cash, Simon Property said. General Growth, the second-largest shopping mall owner in the country next to Simon Property, filed for the biggest real estate bankruptcy in U.S. history last year with $27 billion in debt, $11.8 million of which had already matured or was coming due by the end of 2012. The South Street Seaport operator filed a $9.7 billion reorganization plan in December and some had speculated that it could exit bankruptcy this year. “Simon’s offer provides the best possible outcome for all General Growth stakeholders,” David Simon, company chairman and CEO, said in a statement. “Our offer provides much-needed certainty to conclude General Growth’s protracted reorganization process.” TRD
