CPP Investment Board

CPP Investment Board
General Growth Properties, Inc.

General Growth Properties, Inc.

September 21, 2011 08:00 ET

General Growth Properties, Inc. & Canada Pension Plan Investment Board Form Joint Venture Partnership to Acquire Plaza Frontenac in St. Louis; CPPIB Also Acquires Interest in Saint Louis Galleria

CHICAGO, ILLINOIS and TORONTO, ONTARIO--(Marketwire - Sept. 21, 2011) - General Growth Properties, Inc. (NYSE:GGP) ("GGP") and Canada Pension Plan Investment Board ("CPPIB") today announced a joint-venture partnership to acquire Plaza Frontenac. As part of the transaction, CPPIB also will invest in GGP's Saint Louis Galleria. The joint venture will maintain ownership in the two high profile malls in the Saint Louis metropolitan area.

Under the joint venture, GGP will own a 55% interest and CPPIB will own a 45% interest in Plaza Frontenac. CPPIB's acquired interest in Saint Louis Galleria will be 26%.

The acquisition of Plaza Frontenac represents the addition of a strong, luxury brand asset, with 482,000 square feet of total leasable area and in-line sales of more than $500 per square foot. The mall is one of only nine malls worldwide anchored by both Saks Fifth Avenue and Neiman Marcus. After the acquisition, GGP will own and manage three of these nine properties. Saint Louis Galleria is a super-regional mall with gross leasable area of more than 1 million square feet with in-line sales of more than $585 per square foot. Saint Louis Galleria is anchored by Macy's, Dillard's and soon-to-be-opened Nordstrom.

"Plaza Frontenac is certainly a retail gem in the Midwest and we couldn't be more thrilled to add it to our portfolio. Owning both Saint Louis Galleria and Plaza Frontenac allows us to further solidify our presence in the St. Louis trade area and create retail synergies between the properties so both can flourish," said Shobi Khan, chief operating officer of General Growth Properties, Inc. "As much as we are excited with the Frontenac acquisition, we're equally thrilled to form a prosperous, long-term relationship with CPPIB. CPPIB has a proven track record as a strong investment partner and sophisticated commercial real estate investor."

"This joint venture expands the geographic diversity of CPPIB's U.S. real estate portfolio with the addition of two premier malls," said Peter Ballon, VP and Head of Americas, Real Estate Investments, CPPIB. "We look forward to partnering alongside GGP whose experienced management team and proven track record are well-aligned with our strategy to acquire and hold high quality assets over the long term."


Plaza Frontenac is a 482,000 square foot high-end luxury center in St. Louis, MO, with sales per square foot of more than $500. It's one of nine malls worldwide anchored by both a Saks and Neiman Marcus; together with Fashion Show (Las Vegas) and Tysons Galleria (McLean, VA—DC), the addition of Plaza Frontenac will give GGP ownership of three of the nine. Plaza Frontenac makes its home in the heart of St. Louis' most affluent demographic area. Plaza Frontenac's roster of fine dining restaurants includes Brio Tuscan Grille and Fleming's Steakhouse. Inside, shoppers discover St. Louis' most fashionable retailers, with more than 65% of them exclusive to Plaza Frontenac, including Tiffany & Co., Louis Vuitton, Cole Haan, Sur La Table, BCBG Max Azria, Juicy Couture, Kate Spade, and L'Occitane.


Saint Louis Galleria is one of St. Louis' top tourist destinations, boasting more than 165 specialty stores - more than 25 of which are exclusive within the St. Louis area, including Anthropologie, The Art of Shaving, The Bose Store, Janie and Jack, Lacoste, Love Culture, LUSH, Marmi, Restoration Hardware, True Religion, Urban Outfitters and Vera Bradley. Nordstrom opens this fall. Outstanding culinary choices include The Cheesecake Factory, California Pizza Kitchen, Saint Louis Bread Co., and soon-to-open Black Finn American Grille and Vida Mexican Cantina & Kitchen.


GGP is one of the nation's largest shopping center owners. GGP has ownership and management interest in 166 regional and super regional shopping malls in 43 states. The company portfolio totals 169 million square feet of space. A publicly-traded real estate investment trust (REIT), GGP is listed on the New York Stock Exchange under the symbol GGP.


The Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 17 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, the CPPIB invests in public equities, private equities, real estate, inflation-linked bonds, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, the CPPIB is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At June 30, 2011, the CPP Fund totaled C$153.2 billion. For more information about CPPIB, please visit www.cppib.ca.

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