Shareholders of Utah-based JP Realty Inc. on Wednesday gave their official seal of approval to a deal announced in March, selling the company to General Growth Properties Inc., the nation's second-largest mall owner.
The overwhelming majority of shareholders present at JP Realty's meeting voted in favor of the acquisition, according to General Growth's chief executive officer, John Bucksbaum.
"Of the votes that were actually cast, over 99 percent of them were 'yes,' " Bucksbaum said. "So everybody who submitted voted in favor."
In the $1.1 billion deal, Chicago-based General Growth acquired 18 malls, 26 community shopping centers, industrial property and office space. In return, General Growth paid JP Realty $440 million in cash, assumed $460 million in debt and $116 million in preferred shares of stock. Holders of JP's common stock received $26.10 for each outstanding share.
JP Realty's four Utah malls — the Cottonwood Mall, Provo Towne Center, Cache Valley Mall in Logan and Red Cliffs Mall in St. George — were included in the deal. General Growth also owns the Newgate Mall in Ogden.
With the buyout, General Growth established a regional office in Salt Lake City, according to Ramona Bigger, spokeswoman for the local office. The company also has regional offices in Los Angeles, Dallas and Atlanta.
Though Bigger said it was too early to talk specifics, she said General Growth has big plans for the malls.
"I think there are some great opportunities," she said. "General Growth is the second-largest mall developer in the country. So with that comes all of their contacts, their excellent leasing talent and tremendous resources. I think it's safe to say you'll be seeing some exciting things down the road."
Increasing occupancy also will be a priority, Bucksbaum said. At the time the acquisition was announced, the JP Realty properties had an 83 percent occupancy rate. General Growth properties averaged about 90 percent, Bucksbaum said.
"There is a concentrated effort on the leasing," he said. "There are a number of national retailers who have not been represented at some of these properties. We are working with them to try to find locations that are acceptable for them. We've been successful at doing that, so that activity has already begun.
"We want to take advantage of the national relationships we have with the different retailers and vendors, bringing them into the JP Realty properties as well."
Additionally, the company will take a look at opportunities for expansion or redevelopment, Bucksbaum said, mentioning the Cottonwood Mall as a likely candidate.
General Growth has ownership interest in, or management responsibility for, 163 shopping malls in 41 states. Its portfolio includes about 140 million square feet of retail space and 15,000 retailers.
E-mail: jnii@desnews.com