Seeking Alpha

Everyone says retail is frozen, malls are dead, and mall REITs like General Growth Properties...

Everyone says retail is frozen, malls are dead, and mall REITs like General Growth Properties (GGP) are finished. But Macerich (MAC) just got $450M in new money.
Comments (4)
  • herbert hoover
    , contributor
    Comments (2005) | Send Message
    Why wouldn't they. . . If the lender defaults, the government will pick up the tab.
    2 Apr 2009, 08:38 AM Reply Like
  • mattupp
    , contributor
    Comments (31) | Send Message
    I'm not sure who "everyone" is in this instance, but malls and mall retailers haven't closed up in this area of the US (South East), have been struggling along, but most malls I pass or visit have full or nearly full parking lots and once inside, while not everyone has a shopping bag or two, there's still activity going on.


    People will shop. Over 90% of the workforce IS employed (officially), let's not forget that...


    This is also a great spot to be in to open new stores, to negotiate in this climate with commercial property. We're looking to open, and raising cash through private equity.
    2 Apr 2009, 09:32 AM Reply Like
  • j_remington
    , contributor
    Comments (1343) | Send Message
    They failed to mention that the new money is senior to all common shareholders.
    2 Apr 2009, 09:47 AM Reply Like
  • campbel
    , contributor
    Comments (2) | Send Message
    Even with the $455 million in refinancing, MAC still has more than $4B in obligations coming due over the next three years. Most of their properties are in CA&AZ and most were acquired within the last few years-at prices which have come down markedly. The people who refinanced their debt weren't paying attention. This is still a great short.
    3 Apr 2009, 11:27 AM Reply Like
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