GGP Bidders Said to Seek International Funding

The Financial Times is reporting that both major bidders for bankrupt mall owner General Growth Properties have approached sovereign wealth funds in the Middle East and Asia for financial support.

March 16, 2010
By Allison Landa, News Editor

Courtesy Flickr Creative Commons user LancerE

The Financial Times is reporting that both major bidders for bankrupt mall owner General Growth Properties have approached sovereign wealth funds in the Middle East and Asia for financial support.

Citing sources familiar with the issues, the Times said that talks are in the early stages, and that both Simon Property Group and Brookfield Asset Management are working with several of the larger sovereign funds. Some of these funds are said to be working with both parties, according to the Times.

Simon has reportedly approached the Qatar Investment Authority with regard to funding, while Brookfield is said to likely raise funds from some of the sovereign funds that invested in its $5.5 billion distressed real estate opportunity fund, according to the Times.

This is the latest chapter in a bidding war that has at times felt like a soap opera. Simon has bid $10 billion for GGP, which in turn has rebuffed its advances. Brookfield, on the other hand, has offered $2.6 billion in funding as part of GGP’s reorganization plan. The company went bankrupt last year.