Washington Examiner: Potential Acquisition Would Boost Mall Developer’s Real Estate Portfolio
Washington, D.C., partner Bill Conti was quoted in a February 6 Washington Examiner article titled, "Potential Acquisition Would Boost Mall Developer’s Real Estate Portfolio."
The article focuses on the bid by Simon Property Group, which already has a substantial Washington real estate portfolio, and Farallon Capital Management to purchase the financially troubled Mills Corp., which owns five shopping malls in the Washington region and 38 total U.S. malls.
According to the article, the potential merger would give real estate trust Simon over 10 Washington-area malls. The proposed bid would give Mills’ shareholders payment at least six months faster than the previously accepted offer by Canadian investor Brookfield Asset Management.
Should the retail properties change hands, it is unlikely shoppers will see a difference right away, said Conti, who specializes in mergers and acquisitions. "Change always follows an acquisition like this. It just becomes a question of how much change, and that’s hard to say," Conti said.
While it is likely that Simon would assess the new properties, complete renovation seems unlikely, he said. "[Simon] obviously thinks the underlying value of the assets is good,” Conti said. "The portfolio is prestigious. Potomac Mills [shopping mall] isn’t going anywhere."