The acquisition would mean the rescue of the struggling department chain.
Following a discussion that took place on Wednesday afternoon between Simon Property Group and Brookfield Property Partners, the pair has reportedly reached an agreement in principal which would see the two major mall owners acquire J.C. Penney, in a deal worth approximately $800M. The deal is integral to keep the company afloat with locations open, after filing for bankruptcy back in May.
Simon and Brookfield will reportedly pay around $300M in cash, leaving $500M for the pair to assume in debt. The deal would see the two own 490 of the remaining 650 J.C. Penney stores. The remaining 160 stores along with the brands distribution centres will be owned by a group of lenders and according to a report, the landlords will pay the lenders rent on these 160 stores and distribution centres.
