Projo Biz Blog

PROVIDENCE, R.I. -- Among the debts piled up by General Growth Properties Inc., the company that owns Providence Place mall, is $98.6 million it owes to a Florida real-estate investment firm, according to federal court documents.

General Growth owes the money to LNR Partners, of Miami Beach, Fla., as part of the $400 million it borrowed on Providence Place shortly after the Chicago company took control of the retail center in 2004.

The debt to LNR is included in the voluminous filings that General Growth Properties Inc. (GGP:NYSE) has made recently in its federal bankruptcy case. General Growth, which owns more than 200 malls, filed for Chapter 11 bankruptcy protection in April.

Lehman Brothers Bank initially made the loan secured by Providence Place to General Growth, then sold off portions of that borrowing to other investors.

In August 2005, Lehman Brothers sold $104.3 million of that debt to MetLife Inc. LNR bought up $98.6 million of that initial financing.

LNR was spun off from homebuilding giant Lennar in 1997 and is now a subsidiary of private-equity firm Cerberus Capital Management. LNR owns and manages a portfolio of real estate properties and real estate finance investments -- including secondary loans such as the one secured by Providence Place.

 Tags  bankruptcy economy Providence Place Providence RI

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