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Simon Property Group Inc. has submitted a $10 billion bid to buy the bankrupt General Growth Properties Inc. Indianapolis-based Simon (NYSE: SPG) owns nearly 400 retail properties nationwide, including Ingram Park Mall and Rolling Oaks Mall in San Antonio. Chicago-based General Growth Properties (Pink Sheets: GGWPQ) owns North Star Mall and is an investor in The Shops at La Cantera in San Antonio. Under the terms of the offer, about $7 billion of the total bid would go toward General Growth’s creditors. Shareholders of General Growth would receive the balance of the funds — which equates to more than $9...

When General Growth Properties Inc. sought Chapter 11 protection last month, it took a step its biggest debt holders had believed was impossible: It took 166 of its malls into bankruptcy with it. The surprised debt holders had believed the malls would be insulated from the parent's bankruptcy because of the way General Growth had structured the assets. General Growth's action has rattled investors throughout the $700 billion market for securities backed by commercial mortgages, or CMBS. Investors in other deals had also figured their investment was insulated from a parent company's bankruptcy. Now they're worried that General Growth's move...

I am at a loss to write about now since all news is good news. I am sure I can find a way to twist the 2nd largest mall REIT going bankrupt into a "positive" for the rest of the sector. My working thesis is this bankruptcy will put pressure on the Federal Reserve to make an even larger commitment to bail out all the other REITs. Yep, that works. It will also allow the banks to offload more of their commercial property loans onto the Federal Reserve balance sheet, since it's now a clearly a threat to them making...

NEW YORK (Reuters) – General Growth Properties Inc, the second largest U.S. mall owner, filed for bankruptcy protection on Thursday in one of the biggest real estate failures in U.S. history. Ending months of speculation, the Chicago-based mall owner, which listed total assets of $29.56 billion and total debts of $27.29 billion, sought Chapter 11 bankruptcy protection from creditors along with 158 of its more than 200 U.S. malls, while it seeks to restructure some of its debt.

General Growth Properties Inc. has filed for Chapter 11 federal bankruptcy protection to reorganize. General Growth listed $29.5 billion in total assets and about $27.3 billion of debts in its bankruptcy petition, making it the largest real estate bankruptcy in U.S. history. Chicago-based General Growth (NYSE: GGP), whose shopping mall holdings include Coronado Center, New Mexico's largest enclosed mall, said in an announcement Thursday that it had sought bankruptcy protection only after being unable to refinance or extend maturing debt. The company said all day-to-day operations and business of its shopping malls would continue as usual while it reorganizes. General...

Circuit City’s bankruptcy filing is causing concern among U.S. shopping center and mall property owners as they face the prospect of every Circuit City store turning into vacant space, Reuters reports (via Retailer Daily). The No. 2 consumer electronic retailer will continue to operate through the rest of the year, thanks to $1.1 billion of debtor-in-possession financing from existing lenders, led by Bank of America. However, that financing must be brought down to $900 million by Dec. 29, and Circuit City will be forced to use holidays sales proceeds to repay other outstanding loans. The liquidity will get them through...