Brookfield Properties Retail Group

Brookfield Properties Retail Group
Subsidiary
Industry Real estate investment trust
Genre Shopping malls
Predecessors
  • GGP Inc. (1954–2018)
  • Rouse Properties (2016–2018)
Founded August 28, 2018 (2018-08-28)
Headquarters Chicago, Illinois, US
Area served
 United States
Key people
  • Bruce Flatt (chairman)
  • Sandeep Mathrani (CEO)
Revenue Increase $2.346 billion (GGP, 2016)
Increase $1.272 billion (GGP, 2016)
Total assets Decrease $22.732 billion (GGP, 2016)
Total equity Increase $8.635 billion (GGP, 2016)
Number of employees
 1,800 (GGP, 2016)
Parent Brookfield Property Partners
Website brookfieldpropertiesretail.com

Brookfield Properties Retail Group (abbreviated BPRG) is an American retail real estate investment trust headquartered in Chicago, Illinois. It is a subsidiary of Brookfield Property Partners and the successor of General Growth Properties (GGP), which was founded in 1954 and acquired by Brookfield in 2018. Brookfield acquired Rouse Properties in 2016, which was merged into BPRG with the completion of the GGP acquisition. Its portfolio consists of 163 shopping malls in the United States comprising approximately 146,000,000 feet (45,000,000 m) of gross leasable area; this accounts for all of Brookfield's retail properties in the country except for Brookfield Place in New York City, which is managed directly by Brookfield Asset Management.

History of General Growth

1954–1999

General Growth logo pre-2010

General Growth was founded in Iowa by three brothers, Martin, Matthew and Maurice Bucksbaum,[1] in 1954 as General Management.[2] That year, they borrowed $1.2 million to develop their first shopping center, Town & Country Shopping Center in Cedar Rapids, Iowa, in order to open a fourth location for the grocery store founded by their father.[3]

By 1964, the company owned 5 malls and moved its headquarters to Des Moines, Iowa.[2] In 1970, General Management became General Growth Properties (GGP) and became a public company via an initial public offering.[2] In 1984, the company sold its holdings to Equitable Real Estate Investment Management for $800 million in the largest-ever single-asset real estate transaction to date, but retained the property management of the assets.[4] In 1989, the company acquired Center Companies, creating the fourth-largest shopping center management company in the United States.[5][6]

In 1993, the company once again became a public company via an initial public offering, raising $400 million.[6] In 1994, the company purchased a 40% interest in Centermark Properties from Prudential Financial.[7][8] In 1995, the company sold 25% of its 40% stake, yielding a profit of over $100 million. In 1995, the company also purchased the Homart Development Company from Sears for $1.85 billion.[9] In 1995, co-founder and CEO Martin Bucksbaum died and the company moved its headquarters from Des Moines to Chicago.[3][10] In 1999, John Bucksbaum succeeded his father as CEO.[11]

2000–2018

GGP logo 2011-2018

In 2000, the company moved its headquarters from Des Moines to Chicago.[2] The company occupied a historic building on North Wacker Drive designed by architectural firm Graham, Anderson, Probst & White, that was later demolished.[12] In 2004, the company acquired The Rouse Company, which owned 37 regional shopping malls and Howard Hughes Corporation, a land development company, for $7.2 billion in cash.[13][14] By 2008, the company had taken on $25 billion in debt and the company was facing required debt payments. John Bucksbaum was ousted as CEO, though he remained chairman of the board, and Adam Metz was named CEO.[11] In December 2008, hedge fund manager Bill Ackman disclosed a 25% ownership stake in the company.[15]

In 2009, the company missed a deadline to repay $900 million in loans backed by two Las Vegas properties, putting the company in danger of filing for bankruptcy protection. At that point, the stock price was down 98% in 12 months.[16] The Bucksbaum family's stake in the firm, which was worth $2.5 billion in 2005,[10] had declined in value by a similar amount.[11] On April 16, 2009, the company filed one of the largest real estate bankruptcies ever and received $375 million in debtor-in-possession financing from Pershing Square Capital Management, the hedge fund managed by Bill Ackman.[17] In February 2010, Brookfield Asset Management made a $2.625 billion equity investment in the company.[18][19] In November 2010, the company exited bankruptcy protection. Creditors were paid in full and equity holders made a "substantial" recovery of their investment, both of which are unusual in bankruptcy filings.[20] In conjunction with the reorganization, the company spun off Howard Hughes Corporation to its shareholders.[21]

In December 2010, CEO Adam Metz and President and COO Thomas Nolan left the company and Sandeep Mathrani, formerly the head of the retail division of Vornado Realty Trust, was named CEO.[22] In 2011, the company sold Faneuil Hall for $140 million.[23] In January 2012, the company completed the spin off of The Rouse Company to its shareholders.[21] In 2013, co-founder Matthew Bucksbaum died.[2] In February 2014, Bill Ackman sold his remaining shares in the company back to the company for $556 million.[24] In April 2015, the company acquired the Crown Building for $1.78 billion.[25] In January 2017, the company changed its name to GGP Inc.[26]

History of Rouse

Rouse Properties logo

Rouse Properties was formed in 2011 as a corporate spin-off of General Growth Properties.[27] On January 13, 2012, the company became a public company.[28] In February 2012, the company acquired Grand Traverse Mall for $66 million.[29] In January 2013, the company acquired The Mall at Turtle Creek in Jonesboro, Arkansas for $96 million.[30] In May 2014, the company began a $40 million renovation of NewPark Mall in Newark, California.[31] In March 2015, the company defaulted a loan secured by Vista Ridge Mall in Lewisville, Texas.[32] In November 2015, the company acquired The Shoppes at Carlsbad in Carlsbad, California.[33] On July 6, 2016, the company was acquired by Brookfield Asset Management.[34][35]

Acquisition of General Growth by Brookfield

On August 28, 2018, Brookfield Property Partners acquired GGP for $9 billion in cash as well as units in the new company, Brookfield Property REIT. The transaction reunited the malls spun off in the Rouse Properties spinoff with the GGP malls.[36] Upon closing the acquisition, Brookfield immediately sold a 49% interest in each of three former GGP super-regional malls to CBRE Group, and a 49% interest in three other former GGP malls to TIAA subsidiary Nuveen, seeking additional joint ventures for its newly-acquired malls.[37]

List of properties

The following is a list of properties owned by the company:[38]

Alabama
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Nebraska
Nevada
New Jersey
New Mexico
New York
North Carolina
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
Texas
Utah
Vermont
  • CityPlace Burlington
  • Maple Tree Place
Virginia
Washington
Wisconsin
Wyoming

References

  1. ↑ Strom, Stephanie (July 10, 1995). "Martin Bucksbaum, 74, Pioneer In Shopping Center Development". The New York Times.
  2. 1 2 3 4 5 Goldsborough, Bob (November 29, 2013). "Matthew Bucksbaum, 1926-2013". Chicago Tribune.
  3. 1 2 Strom, Stephanie (July 10, 1995). "Obituaries: Martin Bucksbaum, 74, Pioneer In Shopping Center Development". The New York Times.
  4. ↑ "Matthew Bucksbaum, 87, pioneer and philanthropist". International Council of Shopping Centers. November 26, 2013.
  5. ↑ "Shopping Center Groups Combine". Associated Press. The New York Times. September 30, 1989.
  6. 1 2 Johnson, Ben (January 1, 1996). "General Growth lives up to its name and then some". National Real Estate Investor.
  7. ↑ MILLS, JOSHUA (November 4, 1993). "Prudential Will Sell Centermark". The New York Times.
  8. ↑ "Investors to buy Prudential's shopping malls for $1 billion". United Press International. November 3, 1993.
  9. ↑ "Sears Completes Sale of Its Homart Unit". Reuters. The New York Times. December 27, 1995.
  10. 1 2 Murphy, H. Lee (October 15, 2005). "Bucksbaum". Crain Communications.
  11. 1 2 3 "General Growth founder's son steps aside as CEO". Reuters. October 27, 2008.
  12. ↑ "General Growth Building, Chicago". Chicago Architecture Info.
  13. ↑ "General Growth Properties, Inc. Completes Merger of the Rouse Company" (Press release). Business Wire. November 12, 2004.
  14. ↑ PRISTIN, TERRY (August 21, 2004). "Reshaping a Reshaper of Landscapes; Rouse Company to Be Acquired By Owner of Shopping Centers". The New York Times.
  15. ↑ "Ackman Raises Stake in General Growth". The New York Times. December 10, 2008.
  16. ↑ "General Growth misses payments". Bloomberg News. Baltimore Sun. February 13, 2009.
  17. ↑ DE LA MERCED, MICHAEL J. (April 16, 2009). "General Growth Properties Files for Bankruptcy". The New York Times.
  18. ↑ "General Growth Properties Announces $2.625 Billion Proposed Equity Commitment from Brookfield Asset Management" (Press release). Business Wire. February 24, 2010.
  19. ↑ Graham, Scott (February 24, 2010). "General Growth nabs $2.6B from Brookfield Asset to emerge from bankruptcy". American City Business Journals.
  20. ↑ Hals, Tom; Stempel, Jonathan (November 9, 2010). "U.S. mall operator General Growth exits bankruptcy". Reuters.
  21. 1 2 "General Growth Properties Completes Spinoff of The Howard Hughes Corporation" (Press release). Business Wire. November 9, 2010.
  22. ↑ Jonas, Ilaina (December 17, 2010). "General Growth CEO, president leave Dec. 22-sources". Reuters.
  23. ↑ "GGP Sells Faneuil Hall Marketplace for $140 Million" (Press release). PRNewswire. October 14, 2011.
  24. ↑ "General Growth returns not enough for Ackman's requirements". Bloomberg L.P. Crain Communications. February 13, 2014.
  25. ↑ McIntyre, Andrew (April 21, 2015). "General Growth Pays $1.8B For New York's Crown Building". Law360.
  26. ↑ "General Growth Properties Announces Corporate Name Change to GGP" (Press release). Business Wire. January 17, 2017.
  27. ↑ "General Growth Properties Approves Spin-off of Rouse Properties and Announces Final Capital Structure" (Press release). PR Newswire. December 20, 2011.
  28. ↑ "Rouse Properties, Inc. Debuts as Publicly Traded Regional Mall REIT" (Press release). PR Newswire. January 12, 2012.
  29. ↑ Martinez, Shandra (February 27, 2012). "General Growth Properties' spin-off company buys Grand Traverse Mall for $66 million". Advance Publications.
  30. ↑ Martinez, Shandra (February 27, 2012). "General Growth Properties' spin-off company buys Grand Traverse Mall for $66 million". Advance Publications.
  31. ↑ "Jonesboro's Turtle Creek Mall sells for $96M". Associated Press. January 3, 2013.
  32. ↑ Carlisle, Candace (March 18, 2015). "Vista Ridge Mall owner looks to walk away and list it for foreclosure". American City Business Journals.
  33. ↑ Molnar, Phillip (November 12, 2015). "Westfield Carlsbad purchased for $170 million". San Diego Union Tribune.
  34. ↑ "Brookfield Completes Acquisition of Rouse Properties, Inc" (Press release). Business Wire. July 6, 2016.
  35. ↑ "Brookfield Completes $2.8 Billion Rouse Properties Acquisition". CoStar Group.
  36. ↑ "Brookfield Property Partners L.P. Completes Acquisition of GGP Inc" (Press release). GlobeNewswire. August 28, 2018.
  37. ↑ Campbell, Kyle (29 August 2018). "Brookfield sells shares in three more mall properties". Real Estate Weekly. Retrieved 1 September 2018.
  38. ↑ "Retail Real Estate Malls & Properties". Brookfield Properties Retail Group. Retrieved October 4, 2018.
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