General Growth Properties is offering same-day delivery service at four of its retail centers as part of a pilot program. The REIT could expand this service to more of its 123 properties. The test service will be running at properties in San Francisco, Los Angeles, Chicago and San Jose, Calif.
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.
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.
Prior to the Chapter 11 bankruptcy filing of General Growth Properties, the rival retail REIT, Simon Property Group, tried to buy some of GGP's malls, says Simon's CEO David E. Simon. Nothing came of it, he said, because General Growth "didn't realize they were a distressed seller."