Chicago Mall owner General Growth Properties Inc. and Jones Lang LaSalle announced Monday that the two companies have forged a long-term agreement that puts Jones Lang LaSalle in control of the management and leasing responsibilities for the properties in GGP’s third-party management division.
The terms of the deal weren’t disclosed, but it adds 18 regional shopping malls and community centers in 11 states to JLL’s already hefty 84 million-sq.-ft. portfolio in the Americas and 265-million-sq.-ft. portfolio globally.
Also as part of the deal, Jones Lang LaSalle will absorb 230 employees that work in the General Growth division. Both companies have agreed to share profits from the management contracts based on the properties' performance in the coming months and years.
“The opportunity to partner with General Growth Properties and bring these properties into our portfolio allows us to be able to provide our strategic services to new and existing clients, help these owners maximize the value of their assets, welcome more than 200 talented retail experts into our team and expand our portfolio with 18 quality regional malls and community centers across the country,” said Greg Maloney, president of Jones Lang LaSalle Retail.
“We have a long-term relationship with some of the country’s top institutional and private owners of retail properties,” added Tom Nolan, president and COO for GGP. “This strategic alliance with Jones Lang LaSalle allows our clients to leverage the resources and talents from both GGP and Jones Lang LaSalle and, ultimately, we create a broader range of services for our clients, thereby strengthening their bottom line.”
The properties that are part of the deal include Burbank Town Center in Burbank, Calif., Festival Bay Mall in Orlando, Laurel Commons in Laurel, Md., and Towson Commons in Towson, Md.
General Growth, the country’s second-largest mall operator with more than 200 regional shopping malls in 44 states, sought Chapter 11 bankruptcy protection in April 2009 after failing to refinance portions of its $27 billion debt as they came due, filing the biggest real-estate bankruptcy in the U.S. history. However, certain subsidiaries, including GGP's third party management business conducted by General Growth Management, Inc. and GGP's joint ventures, were not filed for protection.