Yesterday General Growth Properties announced that they are spinning off thirty of their “B” malls into a newly formed real estate investment trust called Rouse Properties. According to the company press release “the Company believes a spin-off of these malls will enhance shareholder value by enabling each entity to more effectively pursue a business strategy that is appropriate for its specific needs.’
In other words, they are dumping the dogs.
According to this story by Alby Gallun in Chicago Real Estate Daily, GGP “had been trying to sell many so-called Class B properties but said a spinoff will allow the company to divest the properties in a single transaction and give General Growth shareholders the opportunity to profit from Rouse's growth.”
It is somewhat ironic that few, if any of the malls in this REIT were actually developed by the former Rouse Company. None of the properties are located in Maryland.