General Growth Company Story of Resilience and Growth

General Growth Company's story of resilience and growth is a testament to the power of adaptability and strategic planning. Founded in 1954, the company has come a long way from its humble beginnings as a small shopping center developer.

Growth was not always a given for General Growth. In fact, the company faced significant financial challenges in the 1990s, including a major debt crisis. However, through a series of strategic partnerships and restructurings, the company was able to stabilize its finances and refocus on growth.

One key factor in General Growth's recovery was its acquisition of Rouse Company in 1998. This deal not only brought new assets and expertise to the table but also marked a significant shift in the company's focus towards upscale retail and mixed-use development.

The company moved its headquarters from Des Moines to Chicago in 2000, occupying a historic building on North Wacker Drive.

By 2004, the company had acquired The Rouse Company and Howard Hughes Corporation for $7.2 billion in cash, expanding its portfolio significantly.

In 2008, the company had taken on $25 billion in debt and was facing required debt payments, leading to a change in leadership with John Bucksbaum being ousted as CEO.

Adam Metz was named CEO, and the company received $375 million in debtor-in-possession financing from Pershing Square Capital Management in 2009, after missing a deadline to repay $900 million in loans.

The company exited bankruptcy protection in November 2010, with creditors being paid in full and equity holders making a substantial recovery of their investment.

General Growth Properties has been focused on creating value and profit by acquiring, developing, renovating, and managing regional malls in major and middle markets throughout the United States.

The company's corporate mission has been its guiding principle since its inception.

General Growth Properties has a subsidiary called General Growth Finance SPE, Inc., which is a key part of its operations.

GGP Limited Partnership is another significant subsidiary of the company, indicating its commitment to partnerships and collaborations.

In 2000, the company moved its headquarters from Des Moines to Chicago, occupying a historic building on North Wacker Drive that was later demolished.

The company's major acquisition in 2004 was The Rouse Company, which owned 37 regional shopping malls and Howard Hughes Corporation, a land development company, for $7.2 billion in cash.

By 2008, the company had taken on $25 billion in debt and was facing required debt payments, leading to a change in leadership with John Bucksbaum being ousted as CEO.

Adam Metz was named CEO, but the company's financial struggles continued, with a deadline to repay $900 million in loans missed in 2009, putting the company in danger of filing for bankruptcy protection.

The stock price plummeted 98% in 12 months, and the Bucksbaum family's stake in the firm, worth $2.5 billion in 2005, had declined in value by a similar amount.

In 2009, the company filed one of the largest real estate bankruptcies ever, receiving $375 million in debtor-in-possession financing from Pershing Square Capital Management, the hedge fund managed by Bill Ackman.

Brookfield Asset Management made a $2.625 billion equity investment in the company in February 2010, helping the company exit bankruptcy protection in November of the same year.

Creditors were paid in full and equity holders made a "substantial" recovery of their investment, both of which are unusual in bankruptcy filings.

The company spun off Howard Hughes Corporation to its shareholders in conjunction with the reorganization.

In December 2010, CEO Adam Metz and President and COO Thomas Nolan left the company, and Sandeep Mathrani was named CEO.

The company sold Faneuil Hall for $140 million in 2011 and completed the spin off of Rouse Properties to its shareholders in January 2012.

Co-founder Matthew Bucksbaum passed away in 2013, and Bill Ackman sold his remaining shares in the company back to the company for $556 million in February 2014.

The company acquired the Crown Building for $1.78 billion in April 2015, and changed its name to GGP Inc. in January 2017.

General Growth Company's primary focus is on creating value and profit by acquiring, developing, renovating, and managing regional malls in major and middle markets throughout the United States.

Their corporate mission is centered around creating value and profit through mall acquisition, development, renovation, and management.

General Growth Properties aims to achieve this mission through its various business activities, which include acquiring, developing, renovating, and managing regional malls.

Streamlining contract preparation with a platform based on Microsoft Word and Intelligent Content Plug-In allowed GGP to handle twice as many requests with the same number of people.

The compliance and conformance rules built into the contract management system saved senior legal staff significant time.

With the ability to quickly prepare contracts and connect them to ERP and CRM systems, GGP's employees could respond to customer inquiries faster, improving the company's relationship with its customers.

The contract management system enabled GGP to improve its capacity to handle requests, making it more efficient and productive.

Here are the benefits GGP realized with the new platform:

Brookfield Property Partners has agreed to acquire the remaining 42% stake in General Growth Properties from its shareholders, marking the end of the company's bankruptcy exit.

This deal is a significant milestone in General Growth's history, allowing the company to shed its bankruptcy label and move forward as a standalone entity.

The acquisition is valued at $4.4 billion, with Brookfield paying $23.50 per share for the remaining stake.

General Growth Properties has undergone significant changes since its bankruptcy in 2009, when it had a debt burden of over $27 billion.

The company has since reduced its debt by over 70% and has been working to reposition itself as a leading mall owner and operator.

With this acquisition, Brookfield becomes the sole owner of General Growth Properties, giving it full control over the company's operations and future direction.

In 2018, Brookfield Property Partners made a significant move in the retail industry by acquiring GGP for $9 billion in cash.

This acquisition reunited the malls spun off in the Rouse Properties spinoff with the GGP malls, creating a larger and more diverse portfolio.

Brookfield immediately sold a 49% interest in three former GGP super-regional malls to CBRE Group, and a 49% interest in three other former GGP malls to TIAA subsidiary Nuveen, seeking additional joint ventures for its newly-acquired malls.

Here's a breakdown of the malls sold to CBRE Group and Nuveen:

This strategic move by Brookfield highlights its focus on expanding its retail portfolio and exploring new joint ventures to drive growth and profitability.