GGP update with a step towards deal
GGP today announced the engagement of UBS for “evaluating potential financial transactions for emergence from Chapter 11, raising exit capital and with such other matters.” This is the first clear indication from management that they are likely to receive an offer or are working with potential suitors.
The recent activity by BAM (here, here, here, here) are strong indication that BAM wants a piece of GGP. From reports it appears that BAM is interested in a JV w/ GGP. The JV route will by-pass any legal concerns with consolidation in REIT. BAM also has a stronger capital structure, less debt, than Simon.
The next couple of weeks to months will be very interesting for this holding. Definitely by June the clouds will clear around GGP. It could happen much faster than that.