in News > Commercial Mortgage
print the content item
Indianapolis-based Simon Property Group Inc., the nation's largest real estate investment trust, has made public its offer to acquire General Growth Properties Inc. (GGP) in a fully financed transaction valued at more than $10 billion, including approximately $9 billion in cash.

The company posted on its Web site the text of its Feb. 8, 2010, offer letter to GGP, as well as a letter Simon sent Tuesday to General Growth.

Simon's offer would provide a 100% cash recovery of par value, plus accrued interest and dividends to all General Growth unsecured creditors, the holders of its trust preferred securities, the lenders under its credit facility and others, Simon says. This consideration to creditors totals approximately $7 billion.

“We have not received a substantive response to this offer from GGP or its advisors, nor any indication that you are prepared to enter into serious discussions so as to make our offer available to your shareholders and creditors,” David Simon, Simon’s chairman and CEO, wrote to GGP’s board of directors Feb. 15. “Accordingly, we are today making our offer public.”

According to Simon’s company statement, the official committee of GGP’s unsecured creditors has advised Simon that it supports the Simon offer, and encourages GGP to engage with Simon promptly to allow the proposed transaction to be considered by GGP’s creditors and shareholders as soon as possible.

"Full cash payment to all unsecured creditors and the substantial recovery for equity holders that Simon has proposed would be a great result,” says Michael Stamer, counsel for the creditors’ committee.

SOURCE: Simon Property Group Inc.


Are You Fully Prepared for a CFPB Exam?_id1237


Latest Top Stories

The 'Widespread Contagion' Of Foreclosure Is Now Contained

RealtyTrac says in its midyear report that foreclosure activity has dwindled back down to historic levels and that it is on track to continue the pace.


New Housing Finance Reform Bill Introduced In Congress

Three congressmen are taking a new crack at balancing public and private involvement in housing finance.


Julian Castro Confirmed As HUD Secretary

The 39-year-old, third-term mayor of San Antonio will replace current HUD Secretary Shaun Donovan, who will next lead the White House Office of Management and Budget.


'Middle Ground' GSE Reform Proposal Would Keep Fannie, Freddie Alive

Proposal provides an explicit government guarantee "but taxpayer money will be protected through adequate private-sector capital and accurate pricing of government reinsurance."


Could Supreme Court Decision Lead To Revocation Of CFPB Rules?

"The Supreme Court decision on the Cordray recess appointment casts doubt that actions taken by the CFPB, via its first and only director, are valid..." said Michelle Garcia Gilbert, managing partner with Tampa, Fla.-based Gilbert Garcia Group.

LenderLive_id1241
Hse SandyHook
Industry Resource
Play for Pink
BSI_id
Safeguard_id1295
CMBA_id1228