Posted on Thursday, February 25th, 2010.
General Growth May Be Rescued From Bankruptcy
General Growth Properties may have found a possible resolution to exit a Chapter 11 Bankruptcy. Brookfield Asset Management Inc., a Canadian company, has agreed to invest around $2 billion in return for part ownership of the mall company. General Growth owns the Galleria at Tyler in Riverside, Moreno Valley Mall, and Redlands Mall to name just a few. The deal has yet to be sealed by the Bankruptcy Court judge.
Simon Property Group is eyeing the opportunity for a takeover bid of General Growth, also being considered by the Bankruptcy Court. Simon Property Malls in the area include Brea Mall, Laguna Hills Mall, The Shops at Mission Viejo , Ontario Mall, and The Block of Orange. Let’s wait to see what other offers come to General Growth as the bankruptcy process continues. Excerpt from the Los Angeles Times article:
“Brookfield Asset Management Inc., which is part of a company that owns a handful of premier office buildings in Los Angeles County, would invest $2.5 billion in cash in General Growth stock in return for 30% ownership.The deal must be approved by a Bankruptcy Court judge, but if the agreement stands it could rescue Chicago-based General Growth from a hostile takeover attempt by archrival Simon Property Group, the country’s largest mall operator.
It’s too soon to determine what changes might be seen at the chain’s malls if the deal is approved, General Growth spokesman David Keating said.”
Read the full article posted in the LA Times.
