The Mall Really May Be Sinking This Time

From the Associated Press via WTEN-TV (ABC 10) in Albany, NY…

General Growth Properties Inc. shares fell today after the nation’s second-largest mall owner warned it faces solvency trouble.
The Chicago-based real estate investment trust said it may be forced to file for bankruptcy if it can’t refinance or extend nearly $1 billion in debt due next month.
The company’s big-name holdings around the country include the Faneuil Hall Marketplace and Natick Collection in the Boston area. It also owns Providence Place in Rhode Island and other malls around New England.

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Monique
Editor
12 years ago

Bailout.

rhody
rhody
12 years ago

My worst fears about that monstrosity are being realized. I had those fears back when the economy was good.

joe bernstein
joe bernstein
12 years ago

The mall has now “automated” the exit procedure from the garage and it is tailor made for malfunctions and backups.I won’t use the place again(never did much anyway)-I can acess anything there by going to Garden City or Route 2-no aprking fee and no back up,so the gas difference isn’t that much.
Garden City is always easy to get in and out of and there is always available aprking.
The PP Mall is a boondoggle.I can just see another big layoff in the making while the irresponsible developers never feel any personal discomfort.
Blue Cross/Blue Shield is laying off,and the US Post Office is laying off for the first time in history.We are close to a depression.Obama may be sorry he got what he wished for.Being a President with an impending depression and a couple of wars ongoing doesn’t make for a sanguine outlook.

Ken
Ken
12 years ago

General Growth Properties Inc. also owns Ala Moana Shopping Center (largest open-air shopping mall in the world) anchored by Neiman Marcus and Nordstrom (over 290 stores) in Honolulu, HI http://www.alamoanacenter.com/
One block from Ala Moana is the 60 acre Ward Centers shopping and entertainment complex with over 250 stores also owned by General Growth Properties Inc. http://www.victoriaward.com/
General Growth Properties Inc. redevelopment current activities in Ward Centers with Updating Ward Center with new multi-level retail spaces and multi-level parking garage; anchored by Whole Foods Market and Pier 1 Imports and a new seven-level parking structure.
General Growth Properties Inc had proposed a massive 20 year redevelopment of the total 60 acres to include transformation into 9 condominium towers with 4,000 condos; 400 stores plus restaurants on lower floors; parking; light rail transit center with connecting buses in a walkable waterview neighborhood. http://www.wardneighborhood.com/
Looks like local talk on the street that General Growth Properties Inc didn’t have the money was right!

Ken
Ken
12 years ago

ADDENDUM:
From Honolulu Advertiser:
“Posted on: Wednesday, November 12, 2008
Ala Moana Center owner may default on debt, file bankruptcy
General Growth may face bankruptcy if it can’t refinance or extend loans
Advertiser Staff and News Services
Shares in General Growth Properties Inc., owner of Ala Moana Center and Ward Centers, plummeted yesterday after the company said it may file for bankruptcy if it can’t refinance or extend nearly $1 billion in debt due next month.
The nation’s second-largest mall owner also disclosed in a regulatory filing late Monday that it may default on certain debt obligations.
Making matters worse is another $3.07 billion in property and corporate debt set to come due next year.
The company’s problems stem from its $11.3 billion purchase of mall operator Rouse Co. in 2004. Financed almost entirely with debt, it left the company highly leveraged ever since.”
All indicators are General Growth Properties Inc. will file Bankruptcy Protection because the current loan is due 1 December.
Full article can be found at:
http://www.honoluluadvertiser.com/article/20081112/NEWS01/811120369/1001

johnpaycheck
johnpaycheck
12 years ago

all financed b the commercial version of subprime mortgages

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