Mall Giants Bought J.C. Penney For a Bargain DJ Mall Giants Bought J.C. Penney For a Bargain
Dow Jones News2:12 PM Eastern Daylight Time Sep 10, 2020
1412 ET - While some investors are concerned about the mall owners' purchase of yet another retailer, this time J.C. Penney, some analysts point out that they got a bargain for control of these assets that could be redeveloped in the future into apartments, hotels and other uses. Simon Property Group and Brookfield Property Partners' agreed to pay $300M in cash and assume $500M of debt for the ownership of 490 stores, which translates to a price tag of around $600,000 in cash per store, "a far cry from the peak when boxes traded for $10 million to $200 million," said Piper Sandler analysts. If Amazon or others look to buy out or sign long term leases, the landlords will have a substantial upside, they added.