Off the Hot Seat: “Spinco” comes to Columbia
Last year, General Growth Properties announced it was filing for Chapter 11 bankruptcy protection. This week, it announced its reorganization into two companies, the “New GGP” and another to-be-named company known in the interim as “Spinco.” (“Spinco” – or “spinoff company” – is a name sometimes used during reorganizations while the legal process is ongoing. For example, Motorola – which is in the process of breaking into two companies – has temporarily dubbed its spinoff company as “SpinCo”, too.)
In a nutshell, “New GGP” remains the U.S.’s second largest mall owner and will focus on the retail real estate business, while the spinoff company is left with little debt to focus exclusively on the master planned communities and mixed-use real estate development/redevelopment opportunities.
The spinoff company’s mission statement is “to be the preeminent U.S. developer of master planned communities and long-term mixed properties. Its projects will create inspiring developments for local communities and citizens and drive sustainable, long-term growth and value for all of Spinco’s stakeholders.”
This is great for Columbia. We have been taken on by a company whose mission is the business of planned communities. Under the former GGP, planned communities like ours were just one item in a very large portfolio. They’ve done a damn good job at it, but for Columbia, this new situation is even better.
Now that our community and government have locked in a plan, it’s nice to know we have a company that can deliver.