REIT Summary: GGP, TD Bank, Essex Property Trust, ProLogis
General Growth Lenders Pledge $4B
General Growth Properties has lined up about $4 billion in commitments from its creditors to exit bankruptcy, The Wall Street Journal reports. Fairholme Capital Management will contribute $2 billion of the mall owner’s debt that it owns, along with an additional $700 million in cash, securing a 28% stake. Pershing Square Capital Management will contribute it’s roughly $500 million of GGP debt and an additional $600 million of cash, getting a 12% stake. The total pledges, along with $2.6 billion already committed by Brookfield Asset Management, will allow GGP to cut majority of its $7 billion in unsecured debt.
Reported by The Wall Street Journal
Additional reporting by Bloomberg
NJ Offices Get $65M TD, US Bank Loans
TD Bank and
U.S. Bank have provided $64.6 million in financing for two office buildings in New Jersey,
Commercial Real Estate Direct reports. The properties at 100 and 200 Campus Drive are part of a complex owned by
KBS REIT II. The financing, which matures in 2014, can be extended for an additional year. KBS has reached an interest-rate swap on the already provided $20 million in funding, with its rate fixed at 5.5%.
Reported by Commercial Real Estate Direct
ProLogis To Buy Back $534M Debt
Distribution centers owner, ProLogis, has begun a cash tender offer to buy back $543 million in notes, PR Newswire reports. The offers relate to the $281 million outstanding principal amount of its 5.5% notes, due April 1, 2012, and nearly $262 million outstanding principal amount of its 5.5% notes, due March 1, 2013. The tender offer will expire on March 15, 2010. The dealer managers for the tender offer are Citigroup and Wells Fargo Securities. In the beginning of 2010, ProLogis repurchased $165 million in convertible senior notes for $152 million and issued 2.2 million common shares for $28 million.
Reported by PR Newswire
Additional reporting by Business Journal
Essex JV Buys CA Complex For $128M
Essex Property Trust and its venture partner are jointly acquiring a residential condominium complex in California for $128 million, Commercial Real Estate Direct reports. The partners will hold equal stakes in Essex Skyline, which is being bought from a construction lender. The real estate investment trust and its partner will pay about 45% less than the Orange County project’s initial construction cost. Essex will get fees and is likely to earn a promoted interest for the acquisition, management and sale of the community, adds The Associated Press.
Reported by Commercial Real Estate Direct