2008-12-02 — lvbusinesspress.com
A New York-based hedge fund bought an interest in up to 20 percent of mall giant General Growth Properties -- a company that had a market capitalization of nearly $9 billion as recently as February -- for just $9.3 million in cash.
...
It's the first vote of confidence in General Growth in several months, but by itself won't dig it out from about $900 million in debt that comes due by December on Fashion Show Mall and Shoppes at Palazzo on the Strip.
Vote of confidence? This is more like a call option. The article has more from Reggie Middleton:
Brooklyn-based investor Reggie Middleton was one of the first to raise red flags about General Growth's debt problems, which can be traced back to an $11.3 billion purchase of Rouse Co., in 2004.
Middleton said Pershing might have gotten a steal if General Growth management can somehow right the ship and refinance the debt due Friday plus another $3 billion next year.
But Middleton also said if he had the money he would cherry-pick individual malls from the company's portfolio of about 200 properties in 44 states.
Middleton cited South Street Seaport in New York and the Las Vegas properties as potential winners.
"There are quite a few gems, marquee properties," Middleton said.
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