Tag Archives: Simon

General Growth Properties gets $3.9 billion investment proposal

General Growth Properties is well known as being the owner of some of the largest and most famous malls in North Texas. The company is however, trying to get out of bankruptcy filing and manage its debt. The company has also successfully and vehemently fended off a competing bid by its rival Simon Property Goup Inc. The company has got help from Brookfield Asset Management, which has taken up 30% in stake in General Growth, even as it gets help in the form of selective assets sale and debt help. Brookfield has already pledge funds to the extent of $2.63 billion, which is substantial and quite handy for General Growth that is desperate to come out of bankruptcy.

There is news that Bruce Berkowitz’s Fairholme Capital Management LLC and William Ackman’s Pershing Square Capital Management LP will pitch in with extra funds to bail out General Growth. These efforts are all scoffed at by Simon Property Inc. which views such deals as being suboptimal and not in the best interests of shareholders. This is something that irks General Growth as it makes a last ditch but honest and sincere effort to come out of bankruptcy. After all, you do not try to out someone down who is trying to come up, do you?

Simon still wants to take over General Growth Properties

The fight continues. Simon Property Group Inc. has said that it would not like to give up its fight to take over General Growth Properties Inc. General Growth has, in the meanwhile, said that it has reached a deal with Brookfield Asset Management Inc. The deal is worth $2.6 billion in equity, and would lift General Growth from its current bankruptcy. The company was under chapter 11 bankruptcy, and if the deal goes through, it can exit bankruptcy. General Growth is the operator of properties like Oxmoor Center and Mall St. Matthews.

The deal with Brookfield Asset Management Inc will mean that the Toronto based money manager would get 30% stake in General Growth. It would also get some cash infusion, useful while it attempts to raise $5.8 billon. The amount will be raised by issuing new equity and sale of assets. The deal for the company’s shareholders will be that for every share owned, they would get one new General Growth common stock which would have an issue value of $10 per share. They would also get one share of General Growth Opportunities, which would have an initial value of $5. This is a new company with certain assets, which was being spun off from General Growth Properties.