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Blackstone funds exit General Growth Properties
May 7, 2013 / 7:41 PM / 4 years ago

Blackstone funds exit General Growth Properties

NEW YORK (Reuters) - Blackstone Group LP (BX.N) plans to sell the 23.4 million shares of General Growth Properties Inc (GGP.N) it holds in four funds that were used to help the mall company emerge from bankruptcy more than two years ago, General Growth said on Tuesday.

Stephen Schwarzman, chairman and CEO of the Blackstone Group, gives a speech at a news conference for the launch of the Schwarzman Scholars at the Great Hall of the People in Beijing, April 21, 2013. REUTERS/China Daily

The sale essentially means Blackstone has exited General Growth, according to a filing with the Securities and Exchange Commission.

Factoring in the cost of the shares, which also included 5 million warrants and later the spin-off of Rouse Properties Inc RSE.N, the fund’s investment effectively was about $8.50 and $9 per share. Based on the price of General Growth on Tuesday, the sale would translate into a gross profit of between 154 percent and 169 percent.

“Blackstone has a finite timeline on its investment,” Green Street Advisors analyst Cedrik Lachance said. “I think it’s harvesting the profits from a highly successful investment.”

Blackstone began selling its funds’ shares in August last year. It later sold back the warrants to General Growth in January.

General Growth shares were down 2 percent, or 47 cents, at $22.86 in afternoon trading.

Reporting by Ilaina Jonas. Editing by Andre Grenon

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