Sternlicht blames Goldman for the deal blowing up. He noted that Cap rates were continuing their downward trajectory (he used the word "plunging", actually).
GGP is spinning off 30 malls into a new REIT named Rouse, but the malls are not the same malls purchased in '04 when GGP bought the company fka The Rouse Company. We forsee future plans to further spin the new Rouse into a company that will not have a name represented by alphanumeric symbols but rather by the symbol below.
13 of the malls are in CMBS deals. Nomura did a nice table of these yesterday, that I'm not going to steal outright, but the loans are mostly in '03 - '05 deals, with 4 from '01. As GGP deals go, the DSCRs are relatively low ranging from 0.89 to 2.19, and GGP noted that Rouse will immediately be amongst the largest B mall owners. Two of the malls in Rouse were originally slated to go back to the lender as part of GGP's bankruptcy, but they were bought via DPOs.
According to Wells Fargo - newly delinquent loans increased by 280 loans or $3.9 billion, but 30+ day delinquencies remained flat at 9.94% and 60+ increased by 8 bps to 9.01%. Highest losses concentrated in Retail and Multifamily.
$460mm AMs were out for bid, mostly from HFs, and spreads widened >25bps yesterday. LCFs were 20+bps wider. AJs were down a couple of points as well.
Specialty Retailer Claire's Files for Chapter 11
15 hours ago