Mall operator Simon Property Group Inc. (SPG) has hired investment advisor Lazard Ltd. (LAZ) and law firm Wachtell, Lipton, Rosen & Katz to help come up with a plan to possibly bid for all or part of rival General Growth Properties Inc. (GGP, GGWPQ.PK), the Wall Street Journal reported Tuesday, citing people familiar with the matter.
General Growth, the owner of more than 200 regional shopping malls in 44 states, is the second-largest mall operator in the U.S. after Simon Property Group by number of properties. Chicago-based General Growth sought Chapter 11 bankruptcy protection in April after failing to refinance portions of its $27 billion debt as they came due. The company is currently readying a plan to reorganize and exit bankruptcy, the WSJ reported. General Growth is reportedly close to a deal with lenders to restructure its $11.5 billion in securitized mortgages with the intent of filing a reorganization plan by February.
Although Simon Property is yet to decide whether or not to make a bid for General Growth bid, the company's CEO David Simon had said earlier this year that he will study General Growth as an acquisition target.
As of September 30, 2009, Simon Property had over $4.0 billion of cash on hand, including its share of joint venture cash, and $3.0 billion of available capacity on the revolving credit facility of the company's majority-owned partnership subsidiary, Simon Property Group L.P.
Australian mall owner Westfield Group, which has $6.8 billion of cash and equivalents, is also monitoring General Growth's bankruptcy, but has not advisers to study it, the WSJ report noted. Westfield owns 55 malls in the U.S.
Mall owners and real estate investment trusts or REITs in the U.S. are facing multiple economic headwinds amid the recession. The market for commercial mortgage-backed securities has taken a hit, while rents and occupancies have weakened. Also, property values have declined, while delinquencies and defaults have risen. However, an acquisition of General Growth, which owns 200 malls, may be too tempting for mall owners to resist.
SPG closed Tuesday's regular trading session at $72.18, down $1.49 or 2.02% on a volume of 3.47 million shares, while GGWPQ.PK closed Tuesday's trading at $4.27, down $0.26 or 5.74% on a volume of 0.93 million shares.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.