General Growth
closes deal on
Ala Moana

The new owner calls the
shopping mall the 'crown jewel'
of the company's portfolio

By Rob Perez
Star-Bulletin

General Growth Properties Inc. today became the sole owner of Ala Moana Center, closing an $810 million deal for Hawaii's largest shopping mall.

The Chicago-based real estate investment trust purchased the 1.8 million-square-foot center from financially troubled Daiei Inc.

John Bucksbaum, General Growth's chief executive, called the mall the "crown jewel" of the company's portfolio, which includes ownership interests in 86 malls.

He said Ala Moana is by far the largest.

"We're very excited about this," Bucksbaum said. "This is a happy day for us."

He said General Growth, which already was managing the 50-acre center, has ideas to improve the mall, but he wasn't ready to discuss them.

"For most folks, it will be business as usual -- but better," Bucksbaum said.

When the deal was first announced earlier this year, General Growth said it was talking to institutional investors about sharing ownership and that the company would have only a 20 percent to 35 percent stake in the property.

But the company decided to purchase the whole thing. It said previously that such a decision didn't indicate General Growth was having problems finding possible partners.

Bucksbaum said his company will continue the expansion of the center but is evaluating and massaging the expansion plans to determine what makes most sense.

"We're re-evaluating really everything that has been contemplated previously," he said.

"The shopping center business is changing so quickly today, and there's a lot of things to choose from."