General Growth spin off would take South Street Seaport under reorganization

New York /
Apr.April 01, 2010 09:44 AM

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]


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