 Final logo, used from 2011–2018 | |
| Formerly |
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|---|---|
| Company type | Public |
| NYSE: GGP | |
| Industry | Commercial real estate |
| Genre | Shopping malls |
| Founded | 1954; 71 years ago (1954) inCedar Rapids,Iowa |
| Founders |
|
| Defunct | August 28, 2018; 6 years ago (2018-08-28) |
| Fate | Acquired byBrookfield Property Partners |
| Headquarters | , US |
Area served | United States |
Key people |
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| Revenue |  $2.346 billion (2016) |
| $1.272 billion (2016) | |
| Total assets |  $22.732 billion (2016) |
| Total equity | $8.635 billion (2016) |
Number of employees | 1,800 (2016) |
| Website | ggp |
GGP Inc. (an initialism ofGeneral Growth Properties) was an Americancommercial real estate company and the second-largestshopping mall operator in the United States. It was founded by brothersMartin,Matthew and Maurice Bucksbaum inCedar Rapids, Iowa, in 1954, and was headquartered inChicago,Illinois, from 2000. It was subject to the largest real estate bankruptcy in American history at the time of its filing in 2009.[1]
GGP was acquired byBrookfield Property Partners, and management of its portfolio was transferred toBrookfield Properties, in 2018. Its portfolio included 125 properties comprising approximately 121,000,000 square feet (11,200,000 m2) in 40U.S. states at the time of its acquisition, ranking behind onlySimon Property Group in total square footage.[2]
General Growth was founded inIowa by three brothers,Martin,Matthew and Maurice Bucksbaum,[3] in 1954 as General Management.[4] That year, they borrowed $1.2 million to develop their first shopping center, Town & Country Shopping Center inCedar Rapids, Iowa, in order to open a fourth location for the grocery store founded by their father.[5]
By 1964, the company owned five malls and moved its headquarters toDes Moines, Iowa.[4] In 1970, General Management became General Growth Properties (GGP) and became apublic company via aninitial public offering.[4] In 1984, the company sold its holdings toEquitable Real Estate Investment Management for $800 million in the largest-ever single-asset real estate transaction to date, but retained theproperty management of the assets.[6] In 1989, the company acquired Center Companies, creating the fourth-largest shopping center management company in the United States.[7][8]
In 1993, the company once again became apublic company via aninitial public offering, raising $400 million.[8] In 1994, the company purchased a 40% interest inCentermark Properties fromPrudential Financial.[9][10] In 1995, the company sold 25% of its 40% stake, yielding a profit of over $100 million. In 1995, the company also purchased theHomart Development Company fromSears for $1.85 billion.[11] In 1995, co-founder and CEO Martin Bucksbaum died and the company moved its headquarters from Des Moines to Chicago.[5][12] In 1999, John Bucksbaum succeeded his father as CEO.[13]
In 2000, the company moved its headquarters from Des Moines to Chicago.[4] The company occupied a historic building on NorthWacker Drive designed by architectural firmGraham, Anderson, Probst & White, that was later demolished.[14] In 2004, the company acquiredThe Rouse Company, which owned 37 regional shopping malls andHoward Hughes Corporation, a land development company, for $7.2 billion in cash.[15][16] By 2008, the company had taken on $25 billion in debt and the company was facing required debt payments. John Bucksbaum was ousted as CEO, though he remainedchairman of the board, and Adam Metz was named CEO.[13] In December 2008,hedge fund managerBill Ackman disclosed a 25% ownership stake in the company.[17]
In 2009, the company missed a deadline to repay $900 million in loans backed by two Las Vegas properties, putting the company in danger of filing forbankruptcy protection. At that point, the stock price was down 98% in 12 months.[18] The Bucksbaum family's stake in the firm, which was worth $2.5 billion in 2005,[12] had declined in value by a similar amount.[13] On April 16, 2009, the company filed one of the largest real estate bankruptcies ever and received $375 million indebtor-in-possession financing fromPershing Square Capital Management, the hedge fund managed by Bill Ackman.[19] In February 2010,Brookfield Asset Management made a $2.625 billion equity investment in the company.[20][21] In November 2010, the company exited bankruptcy protection. Creditors were paid in full and equity holders made a "substantial" recovery of their investment, both of which are unusual in bankruptcy filings.[22] In conjunction with the reorganization, the companyspun offHoward Hughes Corporation to its shareholders.[23]
In December 2010, CEO Adam Metz and President and COO Thomas Nolan left the company andSandeep Mathrani, formerly the head of the retail division ofVornado Realty Trust, was named CEO.[24] In 2011, the company soldFaneuil Hall for $140 million.[25] In January 2012, the company completed the spin off ofRouse Properties to its shareholders.[23] In 2013, co-founder Matthew Bucksbaum died.[4] In February 2014, Bill Ackman sold his remaining shares in the company back to the company for $556 million.[26] In April 2015, the company acquired theCrown Building for $1.78 billion.[27] In January 2017, the company changed its name to GGP Inc.[28]
On August 28, 2018, GGP was acquired byBrookfield Property Partners and management of its former portfolio was transferred to itsBrookfield Properties subsidiary for $9 billion in cash. The transaction reunited the malls spun off in the Rouse Properties spinoff with the GGP malls.[29] Upon closing the acquisition, Brookfield immediately sold a 49% interest in each of three former GGP super-regional malls toCBRE Group, and a 49% interest in three other former GGP malls toTIAA subsidiaryNuveen, seeking additional joint ventures for its newly-acquired malls.[30]
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