NEW YORK, Dec 3 (Reuters) - Brookfield Asset Management Inc and Simon Property Group Inc have bought some of General Growth Properties Inc's bank debt and bonds to position themselves for a bid for the bankrupt U.S. mall owner, the Wall Street Journal reported on Thursday.
A group led by Toronto-based Brookfield has purchased close to $1 billion of General Growth's unsecured debt in recent months, the newspaper reported, citing people familiar with the matter.
Brookfield has stakes in property, renewable power and infrastructure worldwide.
Two years ago, Brookfield acquired 15 shopping centers in Brazil. In 2007, Simon beat out Brookfield for mall owner Mills Corp.
Brookfield hopes to convert the debt into equity and may put up more capital to help General Growth pay off some or all of its remaining $7 billion of unsecured debt to exit bankruptcy next year, the newspaper reported.
Simon, which has said it has hired Lazard Ltd and law firm Wachtell Lipton Rosen & Krantz to advise it on a bid for General Growth, has held talks with other General Growth debt holders about possibly buying their positions, according to the report.
Representatives of General Growth and Brookfield declined to comment on the Wall Street Journal report. A spokesman for Simon was not immediately reachable.
General Growth, which owns and operates more than 200 U.S. malls, is the second-largest U.S. mall owner behind Simon. It sought bankruptcy protection from creditors in April after it could not refinance its maturing debt.
Shares of General Growth closed up $1.03, or 14.8 percent, at $7.98.
(Reporting by Ilaina Jonas) Keywords: GENERALGROWTH/ (ilaina.jonas@thomsonreuters.com ; +1 646 223 6193; Reuters Messaging: ilaina.jonas.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
A group led by Toronto-based Brookfield has purchased close to $1 billion of General Growth's unsecured debt in recent months, the newspaper reported, citing people familiar with the matter.
Brookfield has stakes in property, renewable power and infrastructure worldwide.
Two years ago, Brookfield acquired 15 shopping centers in Brazil. In 2007, Simon beat out Brookfield for mall owner Mills Corp.
Brookfield hopes to convert the debt into equity and may put up more capital to help General Growth pay off some or all of its remaining $7 billion of unsecured debt to exit bankruptcy next year, the newspaper reported.
Simon, which has said it has hired Lazard Ltd and law firm Wachtell Lipton Rosen & Krantz to advise it on a bid for General Growth, has held talks with other General Growth debt holders about possibly buying their positions, according to the report.
Representatives of General Growth and Brookfield declined to comment on the Wall Street Journal report. A spokesman for Simon was not immediately reachable.
General Growth, which owns and operates more than 200 U.S. malls, is the second-largest U.S. mall owner behind Simon. It sought bankruptcy protection from creditors in April after it could not refinance its maturing debt.
Shares of General Growth closed up $1.03, or 14.8 percent, at $7.98.
(Reporting by Ilaina Jonas) Keywords: GENERALGROWTH/ (ilaina.jonas@thomsonreuters.com ; +1 646 223 6193; Reuters Messaging: ilaina.jonas.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.