CHICAGO, Aug. 1, 2011 /PRNewswire/ -- General Growth
Properties, Inc. (NYSE: GGP) ("GGP" or the "Company") today
announced the Company's Board of Directors approved a plan to
spin-off a 30-mall portfolio, totaling 21.1 million square feet, to
holders of GGP common stock in the form of a taxable special
dividend. The dividend is expected to be comprised of common
stock in Rouse Properties, Inc. ("Rouse"), a recently formed
company to which GGP plans to transfer the portfolio. This
distribution is expected to be made on a pro rata basis to holders
of GGP common stock as of the dividend record date. Rouse is
expected to qualify as a Real Estate Investment Trust ("REIT") and
be listed on the New York Stock Exchange.
Rouse is currently 87.7% leased and offers significant
opportunities to enhance value through the execution of rigorous
asset management strategies, including redevelopment. Given
the distinct profile of this portfolio relative to GGP's core mall
portfolio, the Company believes a spin-off of these malls will
enhance shareholder value by enabling each entity to more
effectively pursue a business strategy that is appropriate for its
specific needs. While other divestiture options were
carefully considered, a spin-off represents an efficient execution
that enables shareholders to participate in the potential upside
from the repositioning of the Rouse portfolio. Currently,
Rouse represents approximately 7% of GGP's net operating
income.
Chief Executive Officer, Sandeep
Mathrani commented, "This is a win-win transaction that
enables GGP shareholders to participate in Rouse's significant
growth potential as a standalone entity and efficiently streamlines
GGP into a highly focused, premier mall owner."
This special dividend is anticipated to be declared during the
fourth quarter of 2011; however, it remains subject to the
Securities and Exchange Commission reviewing and declaring
effective Rouse's Form 10 registration statement, which the Company
expects to file later this month, as well as the satisfaction of a
number of other conditions, including third party consents.
We cannot be certain this distribution will proceed or
proceed in the manner as currently anticipated. Should this
special dividend be distributed in the manner and timeframe as
currently anticipated it will satisfy a portion of GGP's 2011 REIT
taxable income distribution requirement.
A schedule of the Rouse properties can be found in the attached
Table I. Additional information about this planned
distribution can be found in the "Rouse Information Package" under
the Investor Relations section of the Company's website at
www.ggp.com.
Table I:
Rouse Properties, Inc. Property Listing:
|
|
|
|
Property
Listing
|
|
|
Mall
|
City
|
|
State
|
|
Total GLA(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Animas Valley Mall
|
Farmington
|
|
New Mexico
|
|
463,168
|
|
2
|
Bayshore Mall
|
Eureka
|
|
California
|
|
612,991
|
|
3
|
Birchwood Mall
|
Port Huron (Detroit)
|
|
Michigan
|
|
725,093
|
|
4
|
Cache Valley Mall
|
Logan
|
|
Utah
|
|
497,535
|
|
5
|
Chula Vista Center
|
Chula Vista (San
Diego)
|
|
California
|
|
874,241
|
|
6
|
Collin Creek
|
Plano
|
|
Texas
|
|
1,020,138
|
|
7
|
Colony Square Mall
|
Zanesville
|
|
Ohio
|
|
492,025
|
|
8
|
Gateway Mall
|
Springfield
|
|
Oregon
|
|
817,624
|
|
9
|
Knollwood Mall
|
St. Louis Park
(Minneapolis)
|
|
Minnesota
|
|
464,619
|
|
10
|
Lakeland Square
|
Lakeland (Orlando)
|
|
Florida
|
|
884,075
|
|
11
|
Lansing Mall
|
Lansing
|
|
Michigan
|
|
834,812
|
|
12
|
Mall St. Vincent
|
Shreveport-Bossier
City
|
|
Louisiana
|
|
532,814
|
|
13
|
Newpark Mall
|
Newark (San
Francisco)
|
|
California
|
|
1,114,322
|
|
14
|
North Plains Mall
|
Clovis
|
|
New Mexico
|
|
303,188
|
|
15
|
Pierre Bossier Mall
|
Bossier City
(Shreveport)
|
|
Louisiana
|
|
611,879
|
|
16
|
Sikes Senter
|
Wichita Falls
|
|
Texas
|
|
667,506
|
|
17
|
Silver Lake Mall
|
Coeur D'Alene
|
|
Idaho
|
|
325,046
|
|
18
|
Southland Center
|
Taylor
|
|
Michigan
|
|
903,210
|
|
19
|
Southland Mall
|
Hayward
|
|
California
|
|
1,264,993
|
|
20
|
Spring Hill Mall
|
West Dundee (Chicago)
|
|
Illinois
|
|
1,167,540
|
|
21
|
Steeplegate Mall
|
Concord
|
|
New Hampshire
|
|
479,110
|
|
22
|
The Boulevard Mall
|
Las Vegas
|
|
Nevada
|
|
1,176,872
|
|
23
|
The Mall at Sierra
Vista
|
Sierra Vista
|
|
Arizona
|
|
365,853
|
|
24
|
Three Rivers Mall
|
Kelso
|
|
Washington
|
|
419,477
|
|
25
|
Valley Hills Mall NC
|
Hickory
|
|
North Carolina
|
|
933,668
|
|
26
|
Vista Ridge
|
Lewisville (Dallas)
|
|
Texas
|
|
1,062,721
|
|
27
|
Washington Park Mall
|
Bartlesville
|
|
Oklahoma
|
|
356,691
|
|
28
|
West Valley
|
Tracy (San Francisco)
|
|
California
|
|
884,673
|
|
29
|
Westwood Mall
|
Jackson
|
|
Michigan
|
|
507,859
|
|
30
|
White Mountain Mall
|
Rock Springs
|
|
Wyoming
|
|
303,619
|
|
|
|
|
|
|
|
|
|
|
TOTAL
|
|
|
|
|
21,067,362
|
|
|
(1) Represents total mall area,
including anchor Gross Leasable Area (GLA)
|
|
|
|
|
|
|
|
|
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements.
Actual results may differ materially from the results
suggested by these forward-looking statements, for a number of
reasons, including, but not limited to, our ability to refinance,
extend, restructure or repay our remaining debt (including that of
our Unconsolidated Real Estate Affiliates) with maturities in the
short to intermediate term, our ability to raise capital through
equity issuances, asset sales or the incurrence of new debt, retail
and credit market conditions, impairments, our liquidity demands
and retail and economic conditions. Readers are referred to the
documents filed by General Growth Properties, Inc. with the
Securities and Exchange Commission, which further identify the
important risk factors that could cause actual results to differ
materially from the forward-looking statements in this release.
The Company disclaims any obligation to update any
forward-looking statements.
ABOUT GGP
GGP is one of the nation's largest shopping center owners. GGP
has ownership and management interest in 166 regional and super
regional shopping malls in 43 states. The company portfolio totals
169 million square feet of space. A publicly-traded real estate
investment trust (REIT), GGP is listed on the New York Stock
Exchange under the symbol GGP.
SOURCE General Growth Properties