REITBull

The Great REIT Unravelling Begins? Simon Property Group Defaults on Loan

Just for the record (Source: SeekingAlpha SPG transcript):

"We have a 25% carried interest in that property behind significant preference for what I will call the true economic owner; there are two other partners in that deal. We have no invested capital in that project. We were working toward a refinance kind of as the property manager of that asset.....we are actually trying to work with the true economic owner and the lender to figure out how to come up with an acceptable alternative to extend the maturity date and give us the time to figure out how to fill the space....Both the true economic owner and the lender have expressed an interest in us maintaining our role in that, even though we don’t get any cash flow and the management fee is de minimus in terms of what we’re doing. So, we are actually trying to be an honest happy broker to figure out how to make and give both of those lender and the borrower the ability to maintain the status quo for a better environment down the road. So, that is the source."
-David Simon

Is There a REIT Reverse Inquiry Conspiracy?

Thanks Rigged.

Is There a REIT Reverse Inquiry Conspiracy?

This Game is so Rigged,

Maybe you can help me out on this....I do not have much experience with BK's. GGP's CMBS holders declared bankruptcy shortly after GGP filed. My understanding is that the properties were held in a single purpose entity. I believe that the CMBS holders declared BK for their respective SPE to prevent them from being crammed down by a judge in the GGP bankruptcy. Chances are the CMBS lenders would do better with a special servicer. Do you know if this accurate? As you can tell I am a little fuzzy on this. Thanks

On Apr 27 02:18 PM This Game is so Rigged wrote:

> @ wobatus
>
> I think we have a vocabulary misunderstanding.
>
> Secured, in this case, are mortgagors. They will foreclose and take/sell
> the specific underlying properties.
>
> DIP lenders will become the new senior unsecured debt holders.<br/>
>
> Unsecured, old-senior debt holders will get "bent over - crammed
> down - offered new bonds at less favorable rates - converted to common
> - whatever you want to call it" in favor of the common shareholders
> (current management).
>
> The common shareholders (who ought to be wiped out entirely), won't
> be (hence Ackman saying he expects the common of GGP to emerge intact).

The Great REIT Unravelling Begins? Simon Property Group Defaults on Loan

This headline is very misleading and irresponsible, in my opinion. The Source at Westbury is a joint venture in which Simon Property Group only has a 25.5% ownership interest for operating rights. Keep in mind that this a company that has $774 million in cash and equivalents as of the end of 2008.

Source: SPG 10K