The Real Deal Miami

General Growth to split, emerge from bankruptcy

February 24, 2010 03:32PM

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 Mizner Park mall in Boca Raton. 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]