General Growth Properties puts three Strip malls on sale

General Growth Properties has announced this morning that three of the largest and glitzier shopping malls in Las Vegas have been put on sale. GGP, operator and owner of more than 20 shopping centers and Malls said that its financial situation is pushing the company to start looking for buyers for the Fashion Show Mall, the Grand Canal Shoppes at the Venetian Resort and Casino, and the retail shops at the Palazzo Resort and Casino.

According to a Las Vegas news office, GGP is not putting the properties on sale because of low sales numbers, but because of how inadequately their parent company is managing the business.  The company also informed that they are replacing their CEO and president with two directors after the board found problems with loans made without following the company policies. General Growth has nearly a billion dollars in loans due by the end of November and their stock has fallen 96% in the last year to about $2 per share.

"The sales at the strip are actually up at all three properties. As we look at our debt within our company - obviously in a tough real estate market - you want to put the assets that are successful and the most saleable...front and center." says Wally Brewster, a GGP spokesperson.

General Growth currently has $900 million in loans due by the end of November and about $4 billion by the end of 2009. The company borrowed to create an enormous portfolio that includes more than 200 properties in 44 states, including a $14 billion deal in 2004 to purchase the Rouse Co., which owned Fashion Show mall, Summerlin Centre as well as other properties in Las Vegas.

"Obviously, properties such as this are prestigious platinum properties that would be very attractive to a number of potential buyers. We deal with numbers of people, so we would know if there are less people here - or more people - probably before anybody else." says Brewster.