In the US, Simon Group has made a $10 bn bid on General Growth Properties, a giant retail REIT that failed spectacularly last year. It was just a couple weeks ago that we heard from Simon, as it cashed out of Arkadia in Warsaw. So now we know what they wanted to do with the money. For some in-depth interpretation of the bid, look here.
Today, Simon announced that it has made written offer to acquire General Growth Properties in a transaction valued at more than $10 billion, including ~$9 billion in cash. The transaction would be financed through SPG’s cash on hand ($4.3 billion) and through equity co-investments in the acquisition by strategic institutional investors, with the balance coming from SPG’s existing credit facilities. The Official Committee of GGP’s Unsecured Creditors has advised Simon that it supports the SPG offer.
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