INDIANAPOLIS, April 21 /PRNewswire-FirstCall/ -- Simon Property
Group, Inc. (NYSE: SPG) ("SPG") today announced that it has
received $1.1 billion in new capital
commitments from ING Clarion Real Estate Securities, Oak Hill
Advisors, RREEF and Taconic Capital Advisors to support a
recapitalization of General Growth Properties, Inc. (NYSE: GGP)
("GGP"). These commitments are in addition to the previously
announced $2.5 billion proposed
investment by SPG and $1 billion
co-investment commitment by Paulson & Co. SPG's firm,
fully financed proposal would be at the same per-share price as the
Brookfield-sponsored proposal but without the expensive and highly
dilutive equity warrants that GGP proposes to issue to Brookfield,
Pershing Square and Fairholme Capital.
David Simon, Chairman and Chief
Executive Officer of SPG, said, "We are pleased to announce the
addition of these new investors to our proposed GGP
recapitalization. This is a highly sophisticated collection
of investors with a deep knowledge of the real estate industry.
Their participation further underscores the fact that
dilutive warrants required by Brookfield, which could cost GGP
shareholders $895 million, are
unnecessary and unfair to GGP's current shareholders. We are
continuing to have productive discussions with additional parties
interested in co-investing in GGP without requiring these costly
warrants."
Mr. Simon continued: "Importantly, our proposed recapitalization
would result in a new GGP with less concentrated ownership among a
diverse group of investors, including dedicated, real-estate
focused institutions with a longer-term investment outlook and who
are better positioned to support the future growth of the
company."
About Simon Property Group
Simon Property Group, Inc. is an S&P 500 company and the
largest real estate company in the U.S. The Company currently
owns or has an interest in 381 properties comprising 260 million
square feet of gross leasable area in North America, Europe and Asia. Simon Property Group is
headquartered in Indianapolis,
Indiana and employs more than 5,000 people worldwide.
The Company's common stock is publicly traded on the NYSE
under the symbol SPG. For further information, visit the
Simon Property Group website at www.simon.com.
Forward-Looking Statements
Certain statements made in this press release may be deemed
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Although the Company
believes the expectations reflected in any forward-looking
statements are based on reasonable assumptions, the Company can
give no assurance that our expectations will be attained, and it is
possible that actual results may differ materially from those
indicated by these forward-looking statements due to a variety of
risks, uncertainties and other factors. Such factors include, but
are not limited to: the Company's ability to meet debt service
requirements, the availability and terms of financing, changes in
the Company's credit rating, changes in market rates of interest
and foreign exchange rates for foreign currencies, changes in value
of investments in foreign entities, the ability to hedge interest
rate risk, risks associated with the acquisition, development,
expansion, leasing and management of properties, general risks
related to retail real estate, the liquidity of real estate
investments, environmental liabilities, international, national,
regional and local economic climates, changes in market rental
rates, trends in the retail industry, relationships with anchor
tenants, the inability to collect rent due to the bankruptcy or
insolvency of tenants or otherwise, risks relating to joint venture
properties, costs of common area maintenance, competitive market
forces, risks related to international activities, insurance costs
and coverage, terrorist activities, changes in economic and market
conditions and maintenance of our status as a real estate
investment trust. The Company discusses these and other risks and
uncertainties under the heading "Risk Factors" in its annual and
quarterly periodic reports filed with the SEC. The Company may
update that discussion in its periodic reports, but otherwise the
Company undertakes no duty or obligation to update or revise these
forward-looking statements, whether as a result of new information,
future developments, or otherwise.
SOURCE Simon Property Group, Inc.