General Growth to sell Strip properties

From staff reports

Published Monday, Oct. 27, 2008 | 10:39 a.m.

Updated Monday, Oct. 27, 2008 | 10:54 a.m.

A shakeup was announced Monday at General Growth Properties Inc. of Chicago, developer of the Summerlin planned community and owner of five Las Vegas regional malls.

General Growth announced that it plans to sell its highly lucrative retail properties in Las Vegas, including Fashion Show Mall, the Grand Canal Shoppes at the Venetian and the Shoppes at the Palazzo. There was no immediate word on plans for the Boulevard and Meadows malls and the Shops at Summerlin Centre, which is under construction.

The company also said John Bucksbaum is stepping down as chief executive officer. Bucksbaum will remain as chairman of the board and will be replaced as interim CEO by Adam Metz, who is a founding partner of Polaris Capital LLC.

Thomas Nolan Jr. will serve as interim president, a position previously held by Robert Michaels. Michaels will continue to serve as chief operating officer and a senior officer of the company. In order to maintain a majority of independent directors, Michaels gave up his board seat.

General Growth said in a statement: "The company’s board of directors and management team, along with its financial and legal advisors, continue to be fully engaged in a comprehensive evaluation of all financial and strategic alternatives for the company, including but not limited to, asset sales, joint ventures, corporate level capital infusions and broader strategic business combinations."

General Growth has been hit hard by the economic slowdown, the credit crunch and its own heavy debt load. Its stock has fallen from a 52-week high of $54.53 to $2.34 Monday morning.