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David simon malls8/30/2023 ![]() The move was intended to create an upscale center to serve the affluent Westside. The company spent $265 million to rip the aging mall at Third Street and Broadway down to its steel foundations and rebuild it as a three-story outdoor shopping venue. Santa Monica Place is one of Macerich’s flagship properties. “Were Simon to be successful in its bid, the combined company would have a truly comprehensive, nationwide footprint in the mall space.” “We expect that this offer is the first in what could be a protracted battle,” Busch said. “I am highly confident that Simon estimates Macerich’s value at significantly more than $91.”Īnalyst Daniel Busch of Newport Beach real estate research firm Green Street Advisors agrees that a struggle for ownership of Macerich could be brewing. Simon Properties - which is among his investment clients’ holdings - “didn’t get to be successful by overpaying,” but its bid of $91 a share for Macerich may grow, Silvers said. “The company has a rock-solid balance sheet and can readily fund its growth.” “Macerich doesn’t have to sell,” said Silvers, the real estate analyst. The malls have about 55 million square feet of leasable space. Macerich’s 51 malls include properties in Chicago, New York and Washington, D.C. Simon Property’s shares fell 14 cents to $180.44. Macerich’s shares closed Monday at $92.76, up $6.04, or nearly 7%, indicating that investors expect a better offer. ![]() Simon didn’t reveal any details of the proposed side deal with General Growth Properties, which could help eliminate antitrust concerns as well as a potential rival bidder for Macerich. General Growth Properties of Chicago owns several malls, including Southern California’s Glendale Galleria. if it succeeds in buying Macerich, David Simon said. Simon Property, which owns slightly more than 200 retail properties, also has agreed to sell selected Macerich assets to General Growth Properties Inc. The bid is valued at $22.4 billion with the assumption of $6.4 billion in debt. “We have completed nearly $40 billion of acquisitions in a variety of complex transactions during our 21 years as a public company and we see no legal or other impediment to completing our purchase of Macerich,” David Simon said in an open letter to Coppola. The two CEOs had met in December and February to discuss Simon’s interest in Macerich. ![]() Simon Property said it is taking its offer to Macerich shareholders because Coppola didn’t respond to overtures from Simon Chief Executive David Simon as promised. Macerich, the third-largest mall owner by market value, issued a statement that its board was reviewing Simon’s offer and urged its shareholders to take no action. ![]()
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