VIDEO: Simon on Buying GGP Malls

Simon Property Group CEO David Simon weighs in on possibly acquiring some of General Growth’s portfolio during a Bloomberg Television interview. “We’re a logical buyer,” he says. “There’s a lot we can do with those properties.”

Simon also says that the industry could see a recovery some time next year if job growth pics up. Click on the image below for the full interview.

Also, RIP Melvin Simon.

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DDR, Macerich Try to Sell Centers

Some major dispositions in the industry are starting to take shape as retail REITs are trying to clear up their debt situations.

Developers Diversified Realty is in the process of selling 12 centers for up to $175 million, mostly to Benderson Development Co., according to reports. And Macerich Co. wants to sell interests in its malls, including Queens [NY] Center.

GGP Bankruptcy Gets More Complicated

Some of the entities that financed some of the General Growth Properties’ malls want those assets taken out of the REIT’s bankruptcy filing.

“The legal separation would give the lenders greater control over the fate of the malls and access to all the excess cash they generate,” according to Reuters.

Simon Interested in Some GGP Malls

This article about the health of Simon Property Group in the recession, reveals that the mall owner might consider acquiring some General Growth Properties assets when the latter’s bankruptcy proceedings mature.

Said CEO David Simon: “I don’t think we would be interested in the whole company. They have some assets that clearly would fit nicely with ours.”

GGP’s Bankrupt. Now What?

General Growth Properties issued a press release announcing it is filing for bankruptcy this morning just before 3 a.m. Eastern time.

This development isn’t much of a surprise to anyone following the story. The mall owner has $27 billion in debt, much of it from huge acquisitions, like its purchase of the Rouse Co. for $12 billion in 2004.

General Growth Tries to Buy Time

General Growth Properties is asking its lenders for until the end of the year to refinance debt, so it can avoid filing for bankruptcy.

The mall owner has $1.18 billion in past-due debt and $4.09 billion that can be accelerated by lenders. It is giving lenders until March 16 to respond.

Would YOU Buy These GGP Malls?

We’ve been a little slow to report that General Growth is marketing three trophy properties in its portfolio that were originally acquired from the Rouse Co. The assets, being marketed by DTZ Rockwood, are Faneuil Hall in Boston; South Street Seaport in Manhattan and Harborplace and the Gallery in Baltimore.

We’ve been intrigued by the prospects of these three centers going to market because of their civic significance in each locale.

Target Not Biting? Why Not Buy GGP?

After proposing that Target’s real estate gets folded into a REIT and getting rejected, Pershing Square Capital Management has now turned its sights to General Growth Properties.

The website-less fund, managed by William Ackman, has now apparently acquired a 20% interest in the mall owner. In a Bloomberg article, Merrill Lynch analysts say it “is the first sign that any investor has expressed a strong interest in the company or sees significant value beyond the mountain of debt.”

Would You Take (At Least) $3.5M to Fix GGP?

That’s what Adam Metz, interim chief executive officer of the debt-laden mall REIT is getting in base salary and fixed bonuses, according to Crain’s. Metz could also see a $1 million discretionary bonus and has options to buy one million shares.

His counterpart, interim president Thomas H. Nolan Jr., gets a $1.25-million base annual salary, a $1.6-million fixed bonus, and a discretionary bonus of $800,000. He has the option to buy 800,000 shares.

General Growth: It’s Weird How Things Change

What’s going on with General Growth Properties is only a small part of this now global financial crisis we’re facing. But the situation has certainly made us reflect.

Sure, plenty of people were skeptical of the $13-billion acquisition of the Rouse Co. in 2004, especially with the amount of debt attached to the deal and Rouse’s portfolio of master-planned assets, a non-core property type for GGP. But did anyone expect it would come to the resignation of CEO John Bucksbaum and the intention to sell its dazzling Vegas portfolio?