Simon and Brookfield finalize terms of J.C. Penney buy

Groups enter into an asset purchase agreement

National /
Oct.October 29, 2020 10:21 AM
Simon Property Group’s David Simon and Brookfield’s Ric Clark (Getty, iStock)

Simon Property Group’s David Simon and Brookfield’s Ric Clark (Getty, iStock)

Simon Property Group and Brookfield Asset Management have finalized the terms of their acquisition of J.C. Penney.

The companies announced Wednesday that they have entered into an asset purchase agreement, which will bring the struggling department store chain out of bankruptcy.

“Signing a definitive APA with Brookfield, Simon and our Majority First Lien Lenders allows us to move forward towards the completion of our financial restructuring,” Jill Soltau, CEO of J.C. Penney, said in a press release. The retailer expects to emerge from Chapter 11 ahead of this year’s holiday season.

Under the agreement, Brookfield and Simon will effectively acquire all of J.C. Penney’s retail and operating assets. The retailer’s lenders will own its real estate and distribution centers through 160 separate holding companies; and the lenders will enter into master lease agreements with Brookfield and Simon.

It was originally reported in September that Simon and Brookfield would pay about $300 million in cash and assume $500 million in debt to buy J.C. Penney.

The move was somewhat expected as the liquidation would have dealt a significant blow to malls.

The retailer is one of the largest stores to file for bankruptcy protection during the pandemic. J.C. Penney entered proceedings with nearly 850 stores and about 85,000 employees.





    Related Articles

    arrow_forward_ios
    Pharrell Williams and David Lerner with a photo of 2545 Northwest Third Avenue and a rendering of the Billionaire Boys Club exterior (Getty, Google Maps, Lerner Family Properties)

    Pharrell’s Billionaire Boys Club to open store in Wynwood

    Pharrell’s Billionaire Boys Club to open store in Wynwood
    The second-largest movie theater operator in the U.S. is hunting for a financial lifeline (iStock)

    Regal Cinemas in talks for rescue deal

    Regal Cinemas in talks for rescue deal
    For many movie theaters, Covid-19, which has kept viewers at home and new releases from the screen, feels like the final curtain. (iStock)

    Curtains: What to do with movie theaters

    Curtains: What to do with movie theaters
    Target COO John Mulligan (Getty)

    Target to open 40 new stores a year; Q3 income jumps

    Target to open 40 new stores a year; Q3 income jumps
    Brookfield's  Brian Kingston and White Marsh Mall (Photos via Brookfield)

    Brookfield delinquent on $190M loan tied to Baltimore mall

    Brookfield delinquent on $190M loan tied to Baltimore mall
    Andrew Rigie, executive director of the NYC Hospitality Alliance (Photos via Getty; Institute of Culinary Education)

    88% of NYC restaurants could not make October rent

    88% of NYC restaurants could not make October rent
    (iStock)

    Studies suggest targeted lockdowns of restaurants, gyms, hotels to curb Covid

    Studies suggest targeted lockdowns of restaurants, gyms, hotels to curb Covid
    From left: Florence Mall in Kentucky and Brookfield’s Brian Kingston; Louis Joliet Mall and Starwood’s Barry Sternlicht and Southland Mall in Cutler Bay and Investcorp’s Hazem Ben-Gacem (Google Maps, Brookfield, Getty, Investcorp)

    A tale of two markets: Some CMBS players see huge losses, others opportunity

    A tale of two markets: Some CMBS players see huge losses, others opportunity
    arrow_forward_ios

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

    Loading...