Saturday, March 28, 2009

KUTV News: Financial Trouble For Mall Owner, Contractor Stops Work

Four General Growth Properties shopping centers across the country have gone into foreclosure within the past month

You won't find this news in the Standard-Examiner. It's not even available in the Trib.

The owner of Newgate Mall is reportedly in deep financial trouble:
Financial Trouble For Mall Owner, Contractor Stops Work
If true, it's obviously significant for Ogden.

While emperor Godfrey obsesses upon his latest knuckle-headed pipe dream, Ogden's existing business infrastructure continues to crumble.

A Weber County Forum Tip O' the Hat to gentle reader Mono for the tip.


george said...

This information was in the local paper a few weeks ago but without elaboration that it was the owner of the Newgate Mall.

The consensus in the financial community is that commercial real estate is the next debacle ready to hit.

Monotreme said...

Thanks for the tip, George.

I did a little deeper digging, and found this in the Dec 21 2008 "Briefcases" section of the S-E (article reprinted in its entirety):

GGP gets another loan extension

CHICAGO — Shoppingmall owner General Growth Properties Inc., which owns six Utah malls, said Wednesday it received another extension on $900 million in loans for two Las Vegas properties.

Lenders agreed to place the loans in forbearance until Feb. 12 as the Chicago company looks to sell some of its assets or raise fresh capital to help pay upcoming debt maturities. The mortgages cover two Las Vegas malls, Fashion Show and Palazzo.

The company is also trying to sell its Las Vegas locations. It had received a two-week extension on the loans for the Las Vegas properties earlier this month.

In Utah, General Growth owns Cache Valley Mall in Logan; Newgate Mall in Ogden; Cottonwood Mall in Holladay; Fashion Place Mall in Murray; Provo Towne Centre; and Red Cliffs Mall in St. George.

This, from the Dec 13 Briefcases in the S-E:

Mall owner may avoid bankruptcy

WASHINGTON — Troubled mall owner General Growth Properties Inc., trying to stave off a bankruptcy filing, said it is still trying to negotiate an extension on $900 million in debt that is due to be repaid Friday, but warned there can be “no assurance” it will get a reprieve.

Investors, however, appeared optimistic that a bankruptcy filing would be avoided. Shares rose 36 cents to close at $1.80 and rose another 7 cents after hours.

General Growth Properties owns six Utah malls: Cache Valley Mall, Logan; Newgate Mall, Ogden; Cottonwood Mall, Holladay; Fashion Place Mall, Murray; Provo Towne Centre; and Red Cliffs Mall, St. George.

Yet, nothing since December 2008. There's a company in financial trouble that owns a mall that's a major source of local tax revenue. They have been staving off bankruptcy for months and have now stopped paying their bills. You think that would be newsworthy?

Monotreme said...

Oh, and as an expression of confidence by the market, GGP stock peaked at just over $2.00 in early January and is now trading for $0.66 a share.

There is a shareholder lawsuit, naturally, but the latest bad news I found, dated Mar 22, is from those sloppy journalists at the Wall Street Journal who can't hold a candle to the crack team at the S-E.

The WSJ says GGP has declined 99% in the last year. Hmm. Stock goes down 99%, loan payments extended, Citi moves to foreclose, not paying their bills. Might be significant local business news.

ozboy said...

Mr. Monotreme

Awfully short sighted of you old chap. This is NOT "significant local business news" when compared to the really big and important stories like Velodromes and hundred million dollar club house re-locations to fix a couple hundred grand a year alleged shortfall.

The crack investigative reporting team at the Standard can only handle so much on their plate at any one time ya know.

Monotreme said...

I see your point. The Davis County Commissioners accidentally booking a pole dancing competition at their convention center is obviously a more significant story than anything else going on in what they insist on referring to as the "top of Utah" today.

OgdenLover said...

If Newgate folds (and I really hope it doesn't), what happens to the Mayor's dream of running public transit down Washington to the Riverdale area? It's already a harebrained idea and that would sink it to a new low.

Of course reality has never slowed Matt down.

Merril said...


I doubt if the Newgate will fail. Haven't read anywhere that it was in trouble like its parent company. The whole area around the mall is doing well with lots of different companies. Worst case I believe is that the mall will be sold off to a successful operator if the parent company goes BK.

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