David Simon, chairman of the board and CEO of family-run Simon Property Group, has sent a personal letter to General Growth Properties alongside an increased and final offer to acquire GGP.
The bid, which came late yesterday and offered to buy GGP for $6.5 billion, is in response to a rival offer from Brookfield Asset Management. In his personal letter to the board of directors of General Growth Properties, the second-generation head outlined the new proposal and said: "These offers are best and final. SPG will not participate in the bidding process in the GGP bankruptcy proceedings in any way once GGP commits to issue the warrants associated with the latest Brookfield sponsored plan."
He later stated that compared to the rival offer, "both SPG proposals are superior in every way," said Simon.
The letter was sent to the GGP board while it was meeting in an attempt to decide the future of the company, which has been operating under Chapter 11 bankruptcy protection since November 2009. GGP goes to court today for a key bankruptcy hearing.
This is the third offer from SPG to acquire GGP, the previous two in February and April having been rejected by GGP. (Continue reading here)
SPG is the largest public US real estate company with revenues in excess of $7 billion. It currently owns or has an interest in 382 properties in North America, Europe and Asia.
Simon Property CEO keeps focus on business amid family dispute
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