posted on March 15, 2010 23:55
General Growth Properties Inc., the owner and operator of several North Texas malls, said its biggest debt and equity holders have offered to invest $3.93 billion in the company, further fending off a competing offer from megamall owner Simon Property Group Inc.
The offering instead bolsters a plan from Brookfield Asset Management Inc. to bring the mall owner out of bankruptcy by matching Simon's $10 billion offer. Simon (Nyse: SPG), based in Indianapolis, is the nation’s largest mall owner.
Bloomberg News reported that investments from Bruce Berkowitz’s Fairholme Capital Management LLC and William Ackman’s Pershing Square Capital Management LP would allow General's unsecured creditors to be paid in full with cash. Their funds are in addition to $2.63 billion pledged by Brookfield.
Brookfield is a property-management company based in Toronto.
General Growth (OTC: GGWPQ), based in Chicago, owns or manages more than 200 regional shopping malls in 43 states.
Earlier this year, General Growth Properties Inc. rejected a $10 billion offer to the sell the company to mall operator and owner Simon Property Group.
In a letter published on General Growth Properties' Web site, the company said it appreciated Simon Property Group's offer, but deemed it not sufficient enough to take the company in the direction it plans to go as Simon considers strategic alternatives for its business.
General Growth Properties is based in Chicago, but operates malls nationwide, including the Stonebriar in Frisco, The Parks at Arlington, Vista Ridge Mall in Lewisville, Collin Creek Mall in Plano, Circle T Power Center in Westlake and Hulen in Fort Worth.
March 9th, 2010 | Dallas Business Journal and The Washington Business Journal (Contributor)