Search Results

February 16, 2018  

GGP Seeks $400 Million Loan on Hawaii Mall

A GGP partnership wants to borrow about $400 million on an addition to its prized Ala Moana Center mall in Honolulu.

Chicago-based GGP and its partners will entertain fixed- and floating-rate bids. They are pitching the assignment directly to securitization lenders, without using a broker.

The 650,000-square-foot addition, dubbed the Ewa wing, was completed in late 2016 on the north end of the giant mall, increasing its size to 2.6 million sf. Bloomingdale’s and Nordstrom anchor the Ewa wing. There are also some 70 in-line stores.

Ala Moana Center, one of GGP’s crown jewels, is a strong performer, which should mitigate bondholder concern about ongoing turmoil in the retail sector, one lender said. The mall is 93.9% occupied. The other anchors are Macy’s, Neiman Marcus, Saks Off Fifth and Target.

The GGP team will use the proceeds to pay down its $409 million outstanding balance on a $430 million construction loan that it lined up in 2015. That loan is pegged to Libor plus 175 bp.

GGP formerly owned Ala Moana Center by itself, but subsequently reduced its interest to 62.5%. In 2015, the REIT sold a 25% stake to pension fund AustralianSuper for $1.4 billion, and a $12.5% stake to TIAA for $682.3 million. The transactions valued the mall at $5.5 billion.

A separate GGP partnership has built a $1 billion luxury condominium tower adjacent to the mall. Construction of the 217-unit Park Lane Ala Moana was financed in 2015 by a $450 million floating-rate loan from a bank syndicate led by Deutsche Bank and Industrial and Commercial Bank of China. GGP’s partners on that project are Kobayashi Group, MacNaughton Group and Black Sand Capital, all of Honolulu. Residents began taking occupancy last year.