General Growth Properties Inc., the No. 2 U.S. shopping mall owner, on Friday said it would buy Rouse Co. for $7.2 billion, expanding its holdings of regional shopping centers and commercial property.
In the latest big deal among U.S. real estate companies, General Growth will pay $67.50 per share in cash for each share for Rouse, a premium of 33 percent over its closing stock price of $50.61 in Thursday New York Stock Exchange trade.
Including the assumption of $5.4 billion in debt, the deal would have a total value of $12.6 billion, General Growth said. Its shares closed Thursday at $31.54 on the NYSE.
The transaction, expected to close in the fourth quarter, adds 37 regional malls, four community centers and six mixed-use projects to General Growth's stable of retail outlets. Rouse properties include such landmark shopping facilities as Water Tower Place in Chicago and Faneuil Hall Marketplace in Boston.
The roughly 40 million square feet of retail space generates sales of $439 per square foot and has an occupancy rate of about 92 percent.
Rouse also develops planned communities, such as Columbia, Maryland, and has more than 9 million square feet of office, industrial and other commercial properties, primarily in the Baltimore-Washington and Las Vegas markets.
General Growth trails only Simon Property Group Inc. among U.S. mall owners, with a portfolio of 178 regional shopping malls in 41 states.
Earlier this summer, Simon struck a deal to buy Chelsea Property Group Inc. for $3.5 billion to boost its outlet shopping center business and gain a presence in Asia.