GGP Ggp Inc. (delisted)

Macerich Co. (MAC) and  General Growth Properties, Inc (GGP) announced a deal in which Macerich will acquire General Growth’s 1/3 ownership each in two malls in the Phoenix market, Superstition Springs and Arrowhead Towne Center. In return General Growth will get the ownership of six stores previously owned by Macerich and $75.0 million in cash.

This transaction is a win-win for both Macerich and General Growth. Macerich, which already had a majority stake in the two regional malls in Phoenix further strengthened its presence in the Phoenix market with the complete ownership of the two malls. On the other hand, this deal enables General Growth to pay off its debts or reinvest in other properties and at the same time strengthen its focus on its core properties.

Macerich has a heavy concentration of A-quality malls in some of the most attractive markets in the U.S., which performed relatively better during recession. This has enabled the company to hold rents fairly stable despite a challenging macroeconomic environment, thereby generating a steady source of revenue.

Santa Monica, California-based, Macerich Company is a real estate investment trust (REIT) focused on leasing regional and community shopping centers throughout the U.S. The company focuses on high barrier-to-entry markets and operates through its limited partnership, The Macerich Partnership, L.P., in which it holds a majority stake.

At current levels, Macerich owns interest in 71 malls spanning approximately 74 million square feet of gross leasable area (GLA). The company has a relatively strong balance sheet with adequate liquidity and minimal debt maturities that provide operating flexibility.

 
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MACERICH CO (MAC): Free Stock Analysis Report
 
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