Will General Growth Find a Buyer for itsMalls?

As GlobeSt.com has reported, General Growth Properties,owner of the South Street Seaport and 192 other shopping mallproperties across the US, is facing major challenges. These stemfrom the double whammy of a weakening retail environment and theimpending due date for $1 billion in short-term debt. The companyhas said it's considering the sale of mall assets to refinance thedebt; whether that scenario would prove successful is anothermatter. Forty-two percent of respondents said GGP will find readybuyers for these properties, while 40% expressed doubt this wouldhappen, given the current outlook both for retail and for obtainingfinancing. Eighteen percent opined that GGP will manage to avoidselling any of its properties—a contention that Dan Fasulo,managing director of Real Capital Analytics, woulddispute.

"The question is a little tricky. There's no doubt in my mindthat many of their assets are very attractive to institutionalinvestors, but the way the question is phrased, it's almost askingwhether GGP will find a buyer for the entire company. In this typeof environment, I would say that's very unlikely. But would acompany like Vornado Realty Trust love to pick up GGP's stuff inthe Northeast, specifically New Jersey? They would jump on that ina second if they had the opportunity. Would they want the otherproperties spread around the country in some pretty challengingmarkets? I don't think so.