News and Events
No. 1 Mall Owner Goes Shopping for Rival
RCS President and CEO Ivan Friedman talks to CNNMoney.com about Simon's bid for General Growth.
Feb 16, 2010 CNNMoney.com Blake Ellis
Simon Property Group Inc., the largest U.S. mall operator, said Tuesday it has made a $10 billion bid to acquire General Growth Properties, Inc, its biggest competitor.
Simon (SPG) said the offer would speed up General Growth's emergence from bankruptcy.
The offer includes about $7 billion that General Growth owes its creditors, about $2 billion to its shareholders and another $1 billion for other assets.
Simon already owns more than 380 properties, including Sawgrass Mills and Town Center in Sunrise, Fla., and Roosevelt Field and the Westchester in suburban New York.
If General Growth accepts the offer, Simon would acquire more than 200 additional properties, including the Paramus Park Mall in New Jersey, Cumberland Mall in Atlanta, Water Tower Place in Chicago and the Glendale Galleria in California.
"Simon is obviously being very aggressive," said Ivan Friedman, president & CEO of RCS Retail Real Estate Advisors. "You've got the two largest mall owners right across the street from each other, so this just makes Simon more difficult to deal with -- they'll be the only guy on the street now."