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Mall REIT Shares Rise on Talk of GGP Sale

For the second time in as many years, published reports say that Brookfield Asset Management is discussing a possible privatization with GGP.

By Paul Bubny | Updated on November 08, 2017

Interior of shopping mall The Grand Canal Shoppes in Las Vegas, one of more than 125 retail properties GGP owns across the US.

CHICAGO—Shares of GGP Inc. and other shopping mall REITs were up on Tuesday and Wednesday following a Bloomberg News report that Brookfield Asset management, GGP’s largest shareholder, was in preliminary discussions about a possible privatization. Citing a source said to be familiar with the matter, the two companies discussed a premium of 10% to 15% above GGP’s share price at the start of this week, according to Bloomberg. Representatives from Brookfield and GGP didn’t respond to GlobeSt.com’s requests for comment by deadline early Wednesday afternoon.

The report followed Brookfield’s announcement last week that it had exercised all of its outstanding warrants in GGP during the third quarter, paying $462 million for 68 million common shares and bringing its total ownership stake to 34%. Then known as General Growth Properties, the mall REIT chose Brookfield as its co-investor as GGP emerged from bankruptcy in 2010. Brookfield acquired additional GGP warrants three years later.

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