IBJNews

Simon loses battle for General Growth

Back to TopCommentsE-mailPrintBookmark and Share
Year In Review

Just as shoppers began spending more cash at Simon Property Group Inc. malls, the Indianapolis real estate giant tried to open its own wallet for three huge deals—to mixed results.

The company failed in May to land its ultimate prize, withdrawing a $6.5 billion bid for Chicago’s General Growth Properties after the rival mall owner snubbed repeated advances.

Simon in August closed on a $2.3 billion acquisition of about 20 outlet malls from Baltimore-based Prime Outlets Acquisition after forging an agreement with the Federal Trade Commission to give up control of some malls where Simon would have cornered the outlet-mall market.

By December, the dominant U.S. mall player was in hot pursuit of the largest mall operator in the United Kingdom, although London-based Capital Shopping Centres Group also was playing hard-to-get.

Capital rejected a $4.6 billion takeover bid from Simon on Dec. 15, but analysts were expecting a sweetened offer.

In rejecting Simon’s offer, London-based Capital Shopping Centres Group said the cash bid “very substantially undervalues the company and its prospects.”

Capital Shopping owns four of the U.K.’s 10 biggest malls. The offer from Simon was conditioned on Capital’s abandoning an expensive acquisition of Trafford Centre Mall in Manchester in the United Kingdom.

Reticence by a Simon acquisition target was nothing new.

The company had pursued General Growth, the second-biggest U.S. mall owner, for three months after being rebuffed. General Growth, in bankruptcy at the time, favored a rival proposal to keep it independent and proceeded with that deal.

General Growth filed the largest real estate bankruptcy in U.S. history in April 2009 after amassing $27 billion in debt making acquisitions. Its properties include New York’s South Street Seaport, Boston’s Faneuil Hall and the Grand Canal Shoppes and Fashion Show in Las Vegas.

In a news release, Simon CEO David Simon called General Growth’s decision to move ahead with Brookfield’s proposal “a truly unfortunate result for all GGP stakeholders.”

Analysts at the time predicted Simon would pay off debt and wait patiently for the next opportunity.•

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. I had read earlier this spring that Noodles & Co was going to open in the Fishers Marketplace (which is SR 37 and 131st St, not 141st St, just FYI). Any word on that? Also, do you happen to know what is being built in Carmel at Pennsylvania and Old Meridian? May just be an office building but I'm not sure.

  2. I'm sorry, but you are flat out wrong. There are few tracks in the world with the history of IMS and probably NO OTHER as widely known and recognized. I don't care what you think about the stat of Indy Car racing, these are pretty hard things to dispute.

  3. Also wondering if there is an update on the Brockway Pub-Danny Boy restaurant/taproom that was planned for the village as well?

  4. Why does the majority get to trample on the rights of the minority? You do realize that banning gay marriage does not rid the world of gay people, right? They are still going to be around and they are still going to continue to exist. The best way to get it all out of the spotlight? LEGALIZE IT! If gay marriage is legal, they will get to stop trying to push for it and you will get to stop seeing it all over the news. Why do Christians get to decide what is moral?? Why do you get to push your religion on others? How would legalizing gay marriage expose their lifestyle to your children? By the way, their lifestyle is going to continue whether gay marriage is legalized or not. It's been legal in Canada for quite a while now and they seem to be doing just fine. What about actual rules handed down by God? What about not working on Sundays? What about obeying your parents? What about adultery? These are in the 10 Commandments, the most important of God's rules. Yet they are all perfectly legal. What about divorce? Only God is allowed to dissolve a marriage so why don't you work hard to get divorce banned? Why do you get to pick and choose the parts of the Bible you care about?

  5. Look at the bright side. With the new Lowe's call center, that means 1000 jobs at $10 bucks an hour. IMS has to be drooling over all that disposable income. If those employees can save all their extra money after bills, in five years they can go to the race LIVE. Can you say attendance boost?

ADVERTISEMENT