Morgan Stanley reportedly has amassed a 5.1% stake in General Growth Properties. The deal follows Pershing Square's recent purchases in General Growth, increasing its stake to 19.9%.
IStockAnalyst says that the two may be betting that the new bailout money that banks are now getting may help General Growth get a possible refinancing for its debt, which would help soften its payments. Alternatively, some speculate that the push by Morgan and Pershing to up their stakes will be a way to use the REIT's properties as collateral to provide financing.
Another good sign for General Growth is that it its creditors had granted a two-week "interim extension" on Sunday on $900 million of debt on mortgage loans for two of its shopping malls. General Growth also said Monday it reached an agreement with a lender to extend the maturity date of $58 million in notes to Dec. 11. - Gerald Magpily
See iStockAnalyst.com article