The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Business Wire

General Growth Properties, Inc. and Macerich Announce Property Swap and Cash Deal

Monday, June 06, 2011

General Growth Properties, Inc. and Macerich Announce Property Swap and Cash Deal07:00 EDT Monday, June 06, 2011 CHICAGO (Business Wire) -- General Growth Properties, Inc. (NYSE:GGP) and Macerich (NYSE:MAC) today announced a deal in which Macerich will acquire GGP's 1/3 ownership each of Superstition Springs and Arrowhead Towne Center, both in the Phoenix market, for a net of $75,000,000 cash to GGP. As part of the deal, GGP will become owner of six big-box anchor locations in Arizona, California, Illinois and Utah previously owned by Macerich. “The success of these two properties [Superstition Springs and Arrowhead Towne Center] can be attributed to Macerich's hands-on partnership over the years. This is an opportunity for both companies,” said Sandeep Mathrani, chief executive officer for General Growth Properties, Inc. “This deal not only provides GGP with additional capital to either pay off debt or reinvest in our properties, it also helps us further solidify our focus on our core assets. The six high profile anchor locations will add to GGP's bottom line and provide further value for our shareholders.” The six big box anchor locations include: Neiman Marcus at Oakbrook Center in Chicago, Illinois Burlington Coat Factory at Chula Vista Center in San Diego, California Forever 21 at Tucson Mall in Tucson, Arizona Kohl's at Southland Mall in Hayward, California Former vacant Mervyn's locations at Fallbrook Mall in Fallbrook, CA, and Newgate Mall in Ogden, Utah “Four of the six anchor/big box locations are leased. The two currently vacant anchor/big-box locations are vital to our ability to redevelop those assets," said Sandeep Mathrani. "Macerich is pleased to conclude this significant transaction that provides a rationalization of ownership of these interests to place ownership in the hands of the natural owner. I totally concur with Sandeep's understanding of the importance of owning the anchors and their parking fields in one's valuable malls. It gives an owner great redevelopment flexibility. This is a transaction that has been a natural conversation for over three years and we are pleased that with the new leadership team in place at GGP that it has resulted in an exchange that is good for both GGP and Macerich," said Art Coppola, chief executive officer of Macerich. ABOUT GGP General Growth Properties has ownership and management interest in 169 regional and super regional shopping malls in 43 states. The Company portfolio totals 172 million square feet of space. A publicly-traded real estate investment trust (REIT), GGP is listed on the New York Stock Exchange under the symbol GGP. For more information on GGP, visit www.ggp.com. ABOUT MAC The Company is the sole general partner and owns a 91% ownership interest in The Macerich Partnership, L.P. Macerich now owns approximately 74 million square feet of gross leasable area consisting primarily of interests in 71 regional malls. Additional information about Macerich can be obtained from the Company's website at www.macerich.com. General Growth Properties, Inc.David Keating, 312-960-6325vice president of corporate communicationsdavid.keating@ggp.com