GGP Inc.
| Company type | Public (formerly) |
|---|---|
| Industry | Commercial real estate |
| Founded | January 1, 1954 in Cedar Rapids, Iowa, United States |
| Founder | Martin Bucksbaum, Matthew Bucksbaum, Maurice Bucksbaum |
| Defunct | 2018 |
| Fate | Acquired by Brookfield Property Partners |
| Headquarters | Chicago , United States |
Area served | United States |
Key people | Adam Metz (former CEO), Sandeep Mathrani (former CEO) |
| Products | Shopping malls |
| Parent | Brookfield Property Partners (since 2018) |
GGP Inc. (originally General Growth Properties) was a prominent American firm specializing in commercial real estate and ranked as the second-largest operator of shopping malls within the United States. Established in 1954 by the Bucksbaum brothers—Martin Bucksbaum, Matthew Bucksbaum, and Maurice Bucksbaum—in Cedar Rapids, Iowa, the company shifted its headquarters to Chicago, Illinois, in 2000. In 2009, GGP filed for bankruptcy, marking the largest real estate insolvency case in U.S. history.
Following its acquisition by Brookfield Property Partners in 2018, GGP's holdings comprised 125 shopping centers spanning roughly across 40 states, positioning it directly behind Simon Property Group in terms of retail space ownership.
20th century
The Bucksbaum brothers launched the enterprise under the name General Management in 1954, securing a $1.2 million loan to develop their inaugural shopping complex, Town & Country Shopping Center, located in Cedar Rapids. By 1964, ownership had expanded to five malls and the company moved its main office to Des Moines, Iowa. The firm rebranded as General Growth Properties in 1970 and became publicly traded through an initial public offering (IPO).
In 1984, GGP divested its assets to Equitable Real Estate Investment Management for $800 million—a record-setting single-asset real estate deal at that time—while continuing to manage the properties. The acquisition of Center Companies in 1989 elevated GGP to the position of the fourth-largest shopping center manager nationwide.
The company re-entered public markets with a 1993 IPO that raised $400 million. That same year, it acquired a 40% interest in Centermark Properties from Prudential Financial and later sold a portion of this stake for over $100 million in 1995. Additionally, GGP expanded its retail footprint significantly by purchasing Homart Development Company from Sears for $1.85 billion in 1995. Following the passing of co-founder Martin Bucksbaum that year, the company relocated its headquarters to Chicago. John Bucksbaum assumed the CEO role in 1999 after his father.
21st century
In 2000, GGP moved its headquarters from Des Moines to Chicago, settling into a historic building along North Wacker Drive. The acquisition of The Rouse Company, which owned 37 regional malls and the Howard Hughes Corporation, was completed in 2004 for $7.2 billion in cash. By 2008, accumulating debt reached $25 billion, leading to leadership changes: John Bucksbaum resigned as CEO and Adam Metz was appointed. In December of that year, hedge fund manager Bill Ackman disclosed ownership of a 25% stake.
The company failed to meet a $900 million loan payment in 2009, triggering a dramatic decline in share value by 98% over one year. The Bucksbaum family’s investment, once valued at $2.5 billion in 2005, experienced a similar downturn. On April 16, 2009, GGP filed for bankruptcy protection—the largest real estate bankruptcy on record—and obtained $375 million in debtor-in-possession financing from Ackman’s Pershing Square Capital Management. In February 2010, Brookfield Asset Management contributed $2.625 billion in equity capital. By November that year, GGP emerged from bankruptcy with creditors fully compensated and equity investors recovering a substantial portion—an unusual outcome for such cases. Simultaneously, it spun off Howard Hughes Corporation to shareholders.
CEO Adam Metz and President Thomas Nolan left the company in December 2010; Sandeep Mathrani, previously head of retail at Vornado Realty Trust, took over as CEO. In 2011, GGP sold Faneuil Hall for $140 million and finalized the spin-off of Rouse Properties by January 2012. Co-founder Matthew Bucksbaum passed away in 2013. Bill Ackman divested his remaining shares back to GGP for $556 million in February 2014. In April 2015, GGP purchased Manhattan’s Crown Building for $1.78 billion. The company adopted the name GGP Inc. as part of a rebranding effort in January 2017.
2018 acquisition by Brookfield Property Partners
On August 28, 2018, Brookfield Property Partners completed the purchase of GGP for $9 billion in cash. Following the acquisition, management responsibilities for GGP's portfolio were assigned to Brookfield's subsidiary, Brookfield Properties. This deal effectively brought together the malls that had previously been separated through the spin-off of Rouse Properties. Shortly after the transaction closed, Brookfield divested a 49% ownership in three former GGP super-regional shopping centers to CBRE Group, and another 49% stake in an additional three malls was sold to Nuveen, a subsidiary of TIAA, forming joint ventures aimed at maximizing the value of these newly acquired assets.