Glendale Galleria - Burbank Town Center Update
Glendale Galleria - Burbank Town Center … Update
Kevin Jones Real Estate and Loans 818-955-SOLD (7653)
This is an update on what is going on in our local area as many are not aware that even the local malls are in trouble. General Growth owns both the Glendale Galleria, the Burbank Town Center and also Northridge Fashion Square.
New York City’s Vornado Realty Trust has entered the picture as a possible third suitor for General Growth Properties Inc.
According to The New York Post, Vornado is mulling over a bid for all or part of the Chicago-based bankrupt mall operator, which owns the Glendale Galleria, Burbank Town Center, Fallbrook Center and Northridge Fashion Center.
A potential bid from Vornado, a real estate investment trust with more than 100 million square feet in its office and retail portfolio, including Chicago’s 4.5 million-square-foot Merchandise Mart, comes after General Growth announced a plan last week to split into two companies with Brookfield Asset Management, of Toronto, as a major investor.
General Growth’s reorganization plan was an attempt to fight an unsolicited $10 billion takeover offer from the Simon Property Group Inc., in Indianapolis.
The Post reports that Simon Property Group reconfirmed its interest in purchasing General Growth Properties Inc. March 2 despite General Growth’s announcement that it has reached a $2.6 billion equity deal with Brookfield Asset Management Inc.
If approved by a bankruptcy court judge, the deal announced March 2 by General Growth will allow the company to exit Chapter 11 bankruptcy protection and possibly avoid being taken over.
Under the terms of the agreement, Brookfield Asset Management would take a 30 percent stake in General Growth and give it enough cash to remain in business while it raises $5.8 billion by selling assets and issuing new equity.
For each share of General Growth owned, the company’s shareholders would receive one share of new General Growth common stock with an initial value of $10 per share, plus one share of General Growth Opportunities — a new company that would own certain assets, such as General Growth’s master-planned communities — with an initial value of $5 per share.
In a statement issued March 2, executives with Simon Properties consider the deal between General Growth and Brookfield “inferior and highly conditional.”
Last week, Simon, which owns Del Amo Fashion Center in Torrance among its retail portfolio, offered General Growth $10 billion, including $9 billion in cash. A total of $7 billion would have gone to creditors and $3 billion to shareholders.
General Growth filed for protection under Chapter 11 of the U.S. Bankruptcy Code in April 2009. In December, it won court approval to restructure about $10.25 billion of its debt on 103 of its 200 properties.
Portions were taken from Loopnet on Mar 3, 2010 which appears they got info from the Los Angeles Business from bizjournals - Interest in Glendale Galleria Owner, GG
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