Investors offer $6.5 billion injection for General Growth

March 10, 2010

CHICAGO - Two major investors in General Growth Properties are joining Brookfield Asset Management in offering to inject a combined $6.5 billion in fresh funds into the shopping mall operator to help it emerge from bankruptcy protection. General Growth said in a statement late Monday that its board is weighing an offer from Fairholme Capital Management, one of its largest unsecured creditors, and Pershing Square Capital Management, one of its largest shareholders, to invest $3.93 billion. It said the new equity capital investment is valued at $15 a share. The offer would be teamed up with one from Canada's Brookfield Asset Management, which last month said it would invest $2.6 billion in cash in exchange for General Growth shares. General Growth said the combined investments, along with it issuing $1.5 billion of debt, would give it the cash it needs to emerge from bankruptcy and pay unsecured creditors in full in cash. General Growth's properties in the Baltimore area include Harborplace & The Gallery, The Village of Cross Keys, Towson Town Center, White Marsh Mall, Owings Mills Mall, Mondawmin Mall and The Mall in Columbia. The company has a division to oversee the growth of Columbia.

- Associated Press

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