Las Vegas Fashion Show Mall Planned Sale To Save From Financial Woes

Fashion Show MallLas Vegas Fashion Show mall planned sale to save real estate investment trust from financial woes this week.  General Growth Properties is the owner of three malls on the Strip including Shoppes at Palazzo, Grand Canal Shoppes and Fashion Show.

GGP is the second largest REIT in the country owning more than 200 properties across the country.  There is near $1 billion in loans due by the end of Nov. and almost $4 billion at the end of 2009.

The sale of the commercial real estate is one last chance for them to try and stall a possible bankruptcy or takeover.  The stock’s value has been declining and many shares have been sold to meet margin calls.  Investors realized the emerging recession would make it difficult, if not impossible, for GGP to fulfill its financial obligations.

In addition to the financial developments, senior management at General Growth, CEO John Buckbaum and President Robert Michaels have been relieved from their corporate duties. Adam Metz is the interim CEO.

General Growth received a large line of credit to purchase their huge real estate portfolio.  It included a $14 billion purchase four years ago.  It included Summerlin Centre, Fashion Show mall and other Las Vegas real estate.

The current events are not likely to keep General Growth Properties as a complete company.  If management watched the credit markets closer they may have averted becoming over leveraged.

Call 702-505-6988 for VIP real estate representation by a real estate agent.

Las Vegas Fashion Show mall planned sale to save from financial woes.

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