At the close of yesterday’s wild market when the Dow soared over 700 points, Brookfield announced that it had come to an agreement to acquire GGP for $23.50 per share. Many analysts are disappointed with the price, indicating that it’s a low-ball offer based on the quality of the malls and their high occupancy levels.
GGP has been on a rocky road since the Great Recession of 2008 and its subsequent bankruptcy. More recently, it’s been pummeled by online retailing.
We have talked a lot about commerce and the scourge of the Internet that’s turned the retail business upside down. Alas, we are over-malled in the US and GGP is likely to be the first of many shopping center and mall owners that are dismantled as fewer mega players drive the restructuring and pruning of the sector.
