David Simon, chairman of the board and CEO of family-run Simon Property Group, stepped in personally to try and help force through his company’s hostile takeover of General Growth Properties.
In a letter to his counterpart at GGP yesterday, the second-generation family member offered to match the reorganisation plan put forward by rival Brookfield Asset Management. However, he claimed his offer to invest $2.5 billion was “substantially more favourable to GGP and its equity holders”. His proposal includes a $1 billion co-investment commitment by Paulson & Co.
GGP has been operating under Chapter 11 bankruptcy protection since November 2009. In February, SPG made a written offer to acquire its rival in a fully financed transaction valued at more than $10 billion. SPG's offer included approximately $9 billion in cash. (Click here to read our coverage of the story)
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.