Shopping mall owner General Growth Properties Inc., which is trying to emerge from bankruptcy protection, on Monday said it is getting a $500 million infusion from a Texas teachers' pension fund.
The Chicago developer said The Teacher Retirement System of Texas will receive shares priced at $10.25 per share in the reorganized company in exchange for the cash. The deal is part of the requirements for the real estate investment trust to emerge from Chapter 11 protection and needs bankruptcy court approval.
General Growth manages 15 malls in Texas including The Parks at Arlington, Town East Mall, Vista Ridge Mall, Hulen Mall, Collin Creek Mall and Stonebriar Centre.
Its April 2009 filing was the biggest real estate bankruptcy case in U.S. history.
General Growth hopes to emerge from Chapter 11 by October. The pension fund will not receive any interest in a newly formed company to be spun off from General Growth when it exits bankruptcy protection.
Separately, General Growth agreed to turn over management responsibility for 18 malls in 11 states to Jones Lang LaSalle.
The properties involved do not include any of General Growth's highest profile locations, like Faneuil Hall in Boston, the Glendale Galleria in Southern California and the South Street Seaport in Manhattan.
The deal between the two firms also calls for Jones Lang LaSalle to provide additional unspecified services for General Growth.
Jones Lang LaSalle, which is based in Chicago, also handles investment sales and capital markets services.
General Growth shares slipped 7 cents to $13.68 in morning trading while Jones Lang LaSalle shares dropped $1.08, or 1.6 percent, to $66.63.