Simon Property to Sweeten Offer for General Growth

The shopping mall real estate investment trust (REIT), Simon Property Group (SPG) is said to be sweetening its offer for the bankrupt General Growth Properties (GGP). Indianapolis-based Simon made a $10bn unsolicited offer to take over its Chicago-based rival GGP in February. And in a March 15 letter to General Growth’s attorneys, Simon said it would make its new offer later this week or early next week, according to multiple media reports. The reports claim part of the new deal will involve $6bn of credit from JP Morgan Chase (JPM). After Simon made its offer public, GGP rejected the offer, resulting in a public back-and-forth between the two shopping mall rivals. Instead, GGP proposed its own restructuring plan, which calls for a $6.5bn cash infusion from three sources — GGP’s largest shareholder and creditor and a separate offer from Brookfield Asset Management (BAM), the Canadian real estate developer. Simon’s plan would have combined the country’s two largest mall owners and expand its reach in the luxury shopping mall market. That’s drawn the ire of the retail industry, which has expressed concern that the deal would give Simon the power to dictate higher rents and sway store openings and closings. According to the latest reports, Simon’s new offer addresses those antitrust and financing concerns, but did not specify how those potential issues would be resolved. A spokesperson for Simon did not respond to HousingWire’s request for comment. Write to Austin Kilgore. The author held no relevant investments.

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3d rendering of a row of luxury townhouses along a street

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