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Rouse Plans $230M Investment to Update 30 Malls

CHICAGO-The General Growth Properties spinoff firm acknowledged in a filing Monday that it needs to spend some cash through 2015 to improve the occupancy of the B-rate malls.

By Robert Carr | Updated on August 30, 2011

CHICAGO-General Growth Properties Inc. filed its formal Form 10 registration Monday with the Securities and Exchange Commission to distribute a 21.1-million-square-foot, 30-mall portfolio to GGP stockholders through a taxable dividend plan. In the filing, the company said the new company, Rouse Properties Inc., will spend about $230 million to renovate the properties.

Rouse is expected to qualify as a REIT, with the distribution expected during the fourth quarter. With the distribution, GGP, which filed for Chapter 11 bankruptcy in April 2009,  is able to discard its B- and lower-rated malls. Following the distribution, Rouse will have two classes of common stock outstanding: common stock, all which will be distributed to GGP stockholders, and non-voting Class B common stock, all of which will be held by a subsidiary of GP and will represent 1% of the aggregate shares of Rouse common stock. No shareholder vote is required.

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