Friday, March 30, 2018

Analysts: GGP Deal Lowers the Bar for Mall REIT Values

NREI Online

Earlier this week, mall REIT GGP Inc. finally agreed to a $9 billion cash buyout offer from Brookfield Property Partners, ending years of negotiations for the takeover of one of America’s largest mall REIT companies. The terms disappointed industry observers, who believe the deal closes out the era of big appetites for mall portfolios, and the willingness to pay premium prices for such assets.

Some industry observers quickly noted that the price carries negative implications for the mall sector. GGP’s portfolio contains plenty of class-A assets and the company owns such premiere properties as the Ala Moana Center in Honolulu, Hawaii and One Union Square in San Francisco.. . . more