By David M. Levitt
NEW YORK - General Growth Properties Inc., the second-biggest U.S. mall owner and the parent company of Providence Place, said its board approved the spinoff of its Rouse Properties Inc. subsidiary, to consist of 30 regional shopping centers in 19 states.
The separation will be completed through a pro rata taxable dividend on Jan. 12, to stockholders of record as of the close of U.S. exchanges on Dec. 30, Chicago-based General Growth said in a statement.
Under the plan, General Growth stockholders will receive about 0.0375 shares of Rouse Properties common stock, the real estate investment trust said. Rouse should have about 35.5 million common shares following the spinoff.
General Growth, which left bankruptcy protection last year, has been refinancing debt and selling properties, including Boston’s Faneuil Hall Marketplace, to boost growth. The REIT, second to Simon Property Group Inc. in size, has stakes in 167 malls in 42 states totaling 169 million square feet (15.7 square meters).
If conditions of the spinoff are not satisfied by the distribution date, General Growth will instead pay a special cash dividend on Jan. 17 to stockholders of record as of Dec. 30, according to the statement.