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The New York Observer

Seaport Developer General Growth Looking for Billions

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October 20, 2008 | 2:04 p.m
General Growth VP Michael McNaughton with the South Street redo model back in July.<br /> (Eliot Brown.)
General Growth VP Michael McNaughton with the South Street redo model back in July.
Eliot Brown.

The Journal has an interesting story today about REIT General Growth Properties, which wants to redevelop South Street Seaport, and its scramble to come up with a few billion dollars as it refinances debt. Its stock price has tanked recently, from $21 a share a month ago to under $6 today, as investors worry about the company's ability to refinance.

From the article:

Mall owner General Growth Properties Inc. is canvassing private-equity firms, hedge funds and other investors in a bid to sell $1.5 billion to $2 billion in preferred shares as it races to refinance or pay off billions of dollars in debt due in the coming months.

The company's bankers at Goldman Sachs Group Inc. have in recent weeks made the rounds of potential investors including Blackstone Group LP, Colony Capital LLC and Vornado Realty Trust, according to people familiar with the situation. The effort is led by Byron Trott, the Goldman banker who recently brokered similar sales of preferred shares for Goldman and General Electric Co. to Warren Buffett's Berkshire Hathaway Inc., these people say.

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