GGP Mall Portfolio Set for Brookfield Revitalization
Chicago-based GGP’s 125-property mall portfolio is set to undergo a transformation as a result of the $15-billion Brookfield Property Partners’ acquisition. Top-tier centers will be expanded, while less successful properties will be scaled back or reconfigured to include a mix of uses.
In an effort to breathe new life into assets, some malls could see new housing, office or hotel components added. While more time-intensive and considered riskier, Brookfield has both the financing resources and experience in completing similar major redevelopment strategies. It recently transformed properties within Rouse Properties Inc.’s portfolio, which it acquired in 2016.
The redevelopment strategy involves new partners that Brookfield brings in to defer some risk and add expertise or capital. Brookfield has sold roughly $4 billion in stakes to JV partners to help pay down acquisition debt. Another $2 billion in mall interests could be sold in the next few years to help further this revitalization strategy.
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*Pictured Water Tower Place, Chicago