NEW YORK Aug 20 Funds run by Blackstone Group
LP have sold about 20 percent of its shares of mall owner
General Growth Properties Inc at $18.45 a share,
according to U.S. regulatory documents filed on Monday.
The sale on Aug. 16 of the 10 million shares leaves
Blackstone and its funds with about 41.2 million shares of the
No. 2 U.S. mall owner, according to a filing with the U.S.
Securities and Exchange Commission. Blackstone and its funds
also have about 5.5 million warrants that give Blackstone the
right to buy more shares in the future, according to the filing.
Stripping out the spinoff of Rouse Properties Inc,
which General Growth completed in January, Blackstone will
capture $94.5 million to $99.5 million from the sale, according
to a source familiar with the sale of the General Growth shares.
It was unclear what the exercise price is for the warrants,
given that they were offered prior to the Rouse spinoff.
Representatives for Blackstone and General Growth did not
immediately respond to calls seeking more information.
Blackstone was one of the sources of capital that helped
General Growth emerge from bankruptcy in late 2010 as two
separate companies. The mall company retained the General Growth
name. The master-planned community business and several large
development projects were spun off as the Howard Hughes Corp
Shares of General Growth on Monday closed at $18.49, down 6
cents or 0.3 percent, on the New York Stock Exchange.