The long-delayed Elk Grove Promenade Mall would be spun off to a new company under a tentative and complicated investment plan announced today by the mall's bankrupt developer, General Growth Properties Inc.
The stalled Elk Grove site and 44 other properties described by General Growth as "non or low-income producing, high long-term potential assets" would become part of a new company called General Growth Opportunities.
Other properties would remain part of the old General Growth.
General Growth announced it agreed to a $2.63 billion equity infusion by Canadian real estate firm Brookfield Asset Management Inc. Other suitors could outbid Brookfield, and the entire deal is subject to approval of the bankruptcy judge.
As part of the deal, the developer's existing shareholders would get stock in both the "old" and "new" General Growth companies.
Thomas Nolan, General Growth's president, said in a press release that the new General Growth Opportunities would have "a large portfolio of opportunistic assets that have substantial long-term value."
Construction halted on the Elk Grove mall in late 2008. The company went bankrupt a few months later.