General Growth Properties has reached a deal to sell its third-party management division--a unit that manages 18 regional malls and community centers--to Jones Lang LaSalle for an undisclosed price. The adds more than 11 million square feet to Jones Lang's portfolio, pushing it past 95 million square feet in the Americas and 265 million square feet worldwide.
Jones Lang made a big jump in our list of the Top Managers of retail real estate from 2009 to 2010. It added 22 million square feet, moving it from number 12 on our list in 2009 to number 7 in 2010. This infusion of space means it may be number 5 or 6 next year, depending on how things continue to shake out.
The two firms are calling the deal a "long-term strategic alliance." The two firms will share profits from the management contracts based on how well the properties perform in the coming months and years.
The deal is one of a flurry of announcements we've seen from General Growth in just the last few days. It also secured a $400 million loan from Barclays. And it has arranged a $500 million equity from the Teacher Retirement System of Texas. It was also due to file its updated plan to exit bankruptcy with the court last Friday.