General Growth Properties would be interested in buying Vornado Realty Trust's class A retail centers, according to GGP CEO Sandeep Mathrani. Vornado recently said it would reduce its retail holdings. It has seven retail properties in its regional shopping center portfolio.
Retail real estate is increasingly a global proposition, says Sandeep Mathrani, CEO of General Growth Properties. Mathrani is also serving as co-chairman of ICSC’s Retail Real Estate World Summit, which is being held from September 11 through 14 in Shanghai, China. One of the reasons for the summit is to better guide retailers and retail real estate investors as they look further afield for markets and investments. “It’s good to move these meetings around the world so that we can provide appropriate exposure to the industry from different parts of the world as opposed to just doing it in the U.S. It’s no longer a localized business,” he says.
General Growth Properties reported that funds from operations in the fourth quarter rose to $279.8 million from $230.1 million a year earlier.
The REIT plans to redevelop shopping centers to boost growth now that it has successfully spun off 30 centers.
General Growth Properties is preparing for what some see as a risky move -- the spinoff of 30 properties into Rouse Properties. Because these are B asset classes, some observers expect Rouse's stock to drop after it begins trading.
Rouse Properties expects to invest $230 million in upgrades of its shopping centers through 2015. The investment will raise the occupancy rate to 93%, it says, from 87.7%. General Growth Properties is spinning off Rouse Properties to hold 30 retail centers.