The rival bidders for General Growth Properties, the bankrupt owner of some of the most high-profile shopping malls in the US, are seeking financial support from sovereign wealth funds in the Middle East and Asia, according to people familiar with the matter.
The talks between the bidders and the foreign investors remain in the early stages but highlight the growing risk appetite of the world's leading SWFs as well as their interest in finding bargains in the beleaguered US commercial property market.
With Simon Property Group and Brookfield Asset Management vying for control of GGP's portfolio of 200 malls, “several of the larger sovereign funds are working with both parties,” said Guy Metcalfe, head of real estate investment banking for Morgan Stanley.