General Growth Properties Inc (NYSE:GGP) has filed a shelf prospectus for the sale of $440 million shares by current shareholders.
The company in its S-3 filing with the Securities and Exchange Commission announced that the prospectus relates solely to the resale of 440,610,621 shares of common stock and 73,928,571 warrants to acquire common stock.
General Growth Properties Inc (NYSE:GGP), however, will not receive any of the proceeds from the sale of common stock shares or the warrants by the selling security holders.
The automatic shelf registration statement on Form S-3 filed by General Growth Properties Inc (NYSE:GGP) indicates that the company is registering shares of common stock and warrants issued or issuable to the selling security holders, to facilitate the resale of these common stock shares and warrants by the holders after the date of the prospectus.
General Growth Properties Second Largest Owner of Regional Malls
General Growth Properties Inc (NYSE:GGP) is a fully integrated, self-managed and self-administered real estate investment trust focused exclusively on owning, managing, leasing, and redeveloping high-quality regional malls throughout the United States and Brazil.
The real estate investment trust’s portfolio as of March 31, 2013, comprised of 124 regional malls in the United States and 18 malls in Brazil comprising approximately 134 million square feet of gross leasable area, or GLA, excluding anchor tenants.
Based on the number of regional malls in its portfolio and GLA, the investment trust is the second largest owner of regional malls in the United States.
General Growth Properties Inc (NYSE:GGP) is a real estate investment trust (REIT), which distributes almost all of its income via dividends to its shareholders. The REIT’s dividend yield is only 2.1 percent. Many REIT’s have performed admirably well, and many of the dividends have gone from high-yield to simply expensive. Recently, Blackstone Group L.P. (NYSE:BX) announced its plan to sell its 2.5 percent stake in the company in a secondary offering.
Brookfield Investors Have Preemptive Rights
Under the Delaware-based company’s investment agreement with the Brookfield Investors, the Brookfield Investors have preemptive rights to purchase the common stock as necessary to allow them to maintain their proportional ownership interest in the company on a fully diluted basis. However, other holders of outstanding shares of the company’s common stock will not have such preemptive rights.
The validity of the securities offered through this shelf prospectus will be passed upon for the company by Sullivan & Cromwell LLP, New York.
General Growth Properties Inc (NYSE:GGP) also indicated in the shelf prospectus that it doesn’t know the quantity and timing of shares that would be offered for sale by the selling security holders. General Growth Properties Inc (NYSE:GGP)’s warrants are not currently listed on any exchange or quotation system. Its shares currently trade at $20.10 on the New York Stock Exchange.