General Growth to split, emerge from bankruptcy

TRD New York /
Feb.February 24, 2010 03:27 PM

General Growth Properties is receiving a $2.5 billion shot in the arm from Canadian property manager Brookfield Asset Management that will allow the shopping mall giant to exit Chapter 11 bankruptcy protection, the company announced today. Brookfield will invest the funds in exchange for a 30 percent stake in General Growth, the second largest mall owner in the country, whose portfolio includes the South Street Seaport. General Growth, which filed for the biggest real estate bankruptcy in U.S. history last year with $27 billion in debt, said shareholders would receive $15 per share in the deal, which is pending bankruptcy court approval. The company also plans to raise up to $5.8 billion in cash to repay its creditors and to create a new company for some of its existing assets. Last week, Indianapolis-based competitor Simon Property Group  offered to buy out General Growth for $10 billion, or $9 per share, including $9 billion in cash. General Growth dismissed the offer as low-ball. [AP via Crain’s]

Related Articles

Brookfield CEO Brian Kingston and Garden State Plaza in New Jersey (Credit: Brookfield, Westfield Garden State)

Analysts still baffled by Brookfield’s big bet on malls

Howard Hughes Corporation CEO Paul Layne with former CEO David Weinreb (Credit: Getty Images)

As Howard Hughes tries to right ship, Seaport remains an albatross

Simon Property Group World Headquarters in Indianapolis (Credit: iStock)

REITs are embracing risk

Howard Hughes CEO David R. Weinreb and South Street Seaport (Credit: NYCgo)

Amid talks of company sale, Howard Hughes lands $250M loan for Seaport project

From left: Simon Property Group David Simon, Forever 21 CEO Do Won Chang, and Brookfield CEO Bruce Flatt (Credit: Getty Images)

Forever 21 is in trouble. So some executives asked its landlords to pitch in, report says

The site (left) and a rendering of 80 South Street (Credit: Google Maps; rendering via YIMBY by ATCHAIN)

China Oceanwide takes out $175M loan against supertall Seaport site

250 Water Street and Howard Hughes Corporation CEO David Weinreb (Credit: Google Maps)

Howard Hughes faces more backlash at Seaport. This time, it’s over toxic contamination concerns

Simon Property launches online platform to drive sales at outlet stores

Simon Property launches online platform to drive sales at outlet stores