Brookfield’s plan for GGP: Add housing, office, hotels to underperforming malls

The development giant, which bought out GGP, will also add stores to the better-performing properties

National /
Aug.August 21, 2018 05:20 PM

The Water Tower Place mall in Chicago and Brookfield Property Partners CEO Ric Clark (Credit: Gabe Popa via Flickr and Getty Images)

Brookfield Property Partners is wasting no time with its plan to turn around General Growth Properties, the massive shopping mall real estate investment trust it bought for $14.8 billion last month.

Toronto-based Brookfield plans to expand GGP’s best performing malls with additional stores, and repurpose poorly performing malls by adding housing, office space or hotels, according to the Wall Street Journal.

Battered by diminishing revenue, many mall owners nationwide are transforming their assets, turning the hulking properties into office space, housing and hotels.

In Los Angeles, Hudson Pacific Properties and Macerich are spending $475 million to convert much of the 500,000-square-foot Westside Pavilion into a creative office space.

In Brookfield’s case, it plans to bring in partial owners for some of GGP’s 125 properties. It has has already sold around $4 billion in stakes in some GGP properties to partners, according to the Journal. It could sell an additional $2 billion more over the next couple of years to help fund development on sites it considers underutilized.

“These are some of the best malls in America and probably in the world,” said Brookfield CEO Brian Kingston. “We don’t want to sell them necessarily. Our preference is always the partnership model.”

Some in the industry have criticized Brookfield’s deal to acquire GGP, saying it underpaid. But others saw few options for the struggling Chicago-based REIT. [Wall Street Journal] — Dennis Lynch 


Related Articles

arrow_forward_ios
Hudson’s Bay Company restructures $846M CMBS loan
Hudson’s Bay Company restructures $846M CMBS loan
Hudson’s Bay Company restructures $846M CMBS loan
Two of the eleven properties under threat of foreclosure (Google Maps)
Mack Real Estate may “strip” club owner of properties
Mack Real Estate may “strip” club owner of properties
270 W Montauk Hwy, Hampton Bays, NY (Loopnet)
Legendary Hampton Bays bar up for sale
Legendary Hampton Bays bar up for sale
Senator Chuck Schumer and 70 Prospect Park West (Google Maps, Getty)
Schumer blasts Brooklyn landlord as NY pols vow to pass good cause eviction
Schumer blasts Brooklyn landlord as NY pols vow to pass good cause eviction
Prologis Chairman and CEO Hamid Moghadam (Getty, Prologis)
Industrial space “effectively sold out” amid leasing frenzy, Prologis says
Industrial space “effectively sold out” amid leasing frenzy, Prologis says
Starwood raises $10B for distressed real estate plays
Starwood raises $10B for distressed real estate plays
Starwood raises $10B for distressed real estate plays
Aulder Capital CEO Jonah Bamberger and 162-164 East 82nd Street (Rosewood Realty Group, Slate Property Group)
Two Upper East Side apartment buildings head to foreclosure sale
Two Upper East Side apartment buildings head to foreclosure sale
Stripes founder Ken Fox and a rendering of 40 10th Avenue (Stripes, Neoscape)
Private equity firm carves out 14K sf at Aurora’s Solar Carve building
Private equity firm carves out 14K sf at Aurora’s Solar Carve building
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...