Like The Herald Business Journal on Facebook!
The Herald of Everett, Washington
Heraldnet.com

The top local business stories in your email

Contact Us:

Josh O'Connor
Publisher
Phone: 425-339-3007
joconnor@heraldnet.com

Jody Knoblich
General Sales Manager
Phone: 425-339-3445
Fax: 425-339-3049
jknoblich@heraldnet.com

Jim Davis
Editor
Phone: 425-339-3097
jdavis@heraldnet.com

Site address:
1800 41st Street, S-300,
Everett, WA 98203

Mailing address:
P.O. Box 930
Everett, WA 98206

HBJ RSS feeds

Partner seeks sale of Alderwood mall’s owner

A partner in the group that owns the Alderwood mall in Lynnwood wants the company to be put up for sale.

SHARE: facebook Twitter icon Linkedin icon Google+ icon Email icon |  PRINTER-FRIENDLY  |  COMMENTS
Bloomberg News and Herald Staff
Published:
A major shareholder in General Growth Properties Inc., an owner of Lynnwood's Alderwood mall, is recommending the company put itself up for sale.
William Ackman of Pershing Square Capital Management LP told General Growth, the second-biggest U.S. shopping-mall owner, that it should consider a sale of the company in a letter filed Thursday with the U.S. Securities and Exchange Commission.
Pershing Square, General Growth's No. 2 shareholder, has discussed a takeover of the Chicago-based company with Simon Property Group Inc. General Growth's largest shareholder, Brookfield Asset Management Inc., didn't support the transaction and said it was interested in buying the company itself, according to the letter.
"Our goals are to ensure that a level playing field exists so that Simon, Brookfield and potentially other parties can compete to acquire the company," Ackman said in the letter. Brookfield should be stopped from "unfairly acquiring control" of General Growth without paying a "premium in a competitively negotiated transaction," he wrote.
General Growth exited bankruptcy protection in November 2010 following a takeover battle between Indianapolis-based Simon Property, its larger rival, and an investor group that included Brookfield and Pershing Square. General Growth filed for bankruptcy in 2009 after weighing itself down with $27 billion in debt that it was unable to refinance because of the financial crisis and collapse of the commercial mortgage-backed securities market. David Keating, a spokesman for General Growth, declined to comment on Thursday.
General Growth shares climbed $1.80 to close at $20.32, the stock's biggest gain in more than a year and highest price in four years.
Alderwood's owner isn't alone in suffering financial woes during the recession. Steadfast Commercial Properties, the primary owner of Everett Mall, defaulted on $98 million loan earlier this year. Steadfast's lender published a foreclosure notice on June 18 in the Herald. In mid-July, a Steadfast spokeswoman said the California-based company and its lender were in talks to avoid foreclosure.
Over the last month, however, representatives of Steadfast and Everett Mall have refused repeated requests for comment.
Story tags » Alderwood mallEverett Mall

MORE HBJ HEADLINES

CALENDAR

Share your comments: Log in using your HeraldNet account or your Facebook, Twitter or Disqus profile. Comments that violate the rules are subject to removal. Please see our terms of use. Please note that you must verify your email address for your comments to appear.

You are logged in using your HeraldNet ID. Click here to update your profile. | Log out.

Our new comment system is not supported in IE 7. Please upgrade your browser here.

comments powered by Disqus

Market roundup