Mall investors set for bonanza as finance recovers

(Financial Times) Hedge funds and other investors now stand to make billions of dollars from their holdings in bankrupt US mall owner General Growth Properties, underscoring the extent of the recent rebound in financial markets, people familiar with the matter say.

Among the biggest potential winners is William Ackman's Pershing Square Capital Management, which is sitting on a paper profit of more than $800m on investments in the debt and equity of GGP, according to people familiar with Mr Ackman's fund. Other investors that stand to make big profits on holdings in the high-profile retail property owner include Centerbridge Partners, Elliott Associates, Goldman Sachs, John Paulson's Paulson & Co and York Capital, the people said.

"General Growth is a fantastic example of the speed with which real-estate finance is coming back," said Bob Steers, co-chairman of real estate investment firm Cohen & Steers, which has not invested in General Growth.

GGP, owner of malls including Boston's Faneuil Hall Marketplace and Honolulu's Ala Moana Center, (Holladays Cottonwood Mall, Murrays Fashion Place Mall, Logans Cache Valley Mall, Ogdens Newgate Mall, Provos Towne Center Mall, St Georges Red Cliffs Mall and thriteen (13) Community Centers in Utah) and filed for Chapter 11 bankruptcy protection in April. It has about $22bn in senior secured debt and $6bn in debt not backed by collateral.

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