As part of General Growth Properties' bankruptcy filing, the company secured a $375 million debtor-in-possession (DIP) loan from Pershing Square Capital Management, L.P., a New York City-based hedge fund. Pershing Square already owns 7.4 percent of the voting shares in the company and through swaps Ackman owns, it’s estimated that Ackman controls about 25 percent of GGP’s equity now.
According to an SEC filing from General Growth, the DIP agreement provides financing with interest at an annual rate of LIBOR (with a minimum LIBOR floor of 3 percent) plus 12 percent. Further, the agreement states that upon the effective date of a plan of reorganization, General Growth will issue warrants to Pershing and its designees to acquire 4.9 percent, on a fully diluted basis, of each class or series of equity securities of the company and 4.9 percent, on a fully diluted bases, of the securities of such subsidaries issued in respect of certain claims in connection with the Chapter 11 filings.
Other Notable Deals
Centro Property Group sold the 252,096-square-foot Enfield Commons in Enfield, Conn., to Paramount Realty Services for $24 million, or $95 per square foot. Cushman & Wakefield of Massachusetts, Inc. represented Centro. Cushman & Wakefield Capital Markets Group procured the buyer…. Day Creek Investors, LLC sold the 25,002-square-foot Day Creek Village in Rancho Cucamonga, Calif., to Towne Park Plaza L.P. for $11 million. Faris Lee Investments represented the seller. Marcus & Millichap represented the buyer. The sales price of $11 million represents $440 per square foot and a cap rate of 7.59 percent.…. BMill, LCC sold a 14,820-square-foot single-tenant net-leased retail building in Tempe, Ariz., to Three Ochs, LLC for $7.9 million. Marcus & Millichap represented both parties in the transaction…. Midlothian Plaza Associates, LLC has purchased a 146,305-square-foot retail center in Richmond, Va., from Allied Capital REIT, Inc. for $7 million. Thalhimer/Cushman & Wakefield Alliance represented both parties in the transaction…. Stan Johnson Co. represented both parties in the sale of a 11,945-square-foot free-standing CVS Pharmacy in Bogalusa, La, from an unnamed developer to a privately-held REIT for $4.2 million…. The Zall Co. and First Properties Inc. represented CVS Caremark on a $2.6 million sale of a former 27,634-square-foot Longs Drugs building in Colorado Springs to an investment group of Golden Property, LLC and 15-16 Realty Corp. First Properties Inc. represented the buyers.
(To have your deals included in our weekly roundup, please email releases to David Bodamer or Elaine Misonzhnik.)