February 17, 2010 (FinancialWire) — Simon Property Group, Inc. (NYSE: SPG) said that it has made a written offer to acquire General Growth Properties, Inc. (OTC: GGWPQ) in a fully financed transaction valued at more than $10 billion.

The deal includes around $9 billion in cash, according to Simon.

In a February 8 offer letter to General Growth, Simon said that its offer would, “provide a 100% cash recovery of par value plus accrued interest and dividends to all General Growth unsecured creditors, the holders of its trust preferred securities, the lenders under its credit facility, the holders of its Exchangeable senior notes and the holders of Rouse bonds”

It claimed that this consideration to creditors totals around $7 billion.

Simon claimed that General Growth shareholders would receive more than $9 per General Growth share, consisting of $6 per share in cash and a distribution of General Growth’s ownership interest in master planned community assets valued by General Growth at more than $3.00 per share.

Simon said it is also prepared to offer Simon common equity instead of the cash consideration, in whole or in part, as payment to those General Growth shareholders or creditors who would prefer to participate in the upside of owning stock in Simon.

Under Simon’s offer, the existing secured debt on General Growth’s portfolio of assets would remain in place.

Indiana-based Simon Property operates from five retail real estate platforms, including regional malls, premium outlet centers, The Mills, community/lifestyle centers and international properties.

It currently owns or has an interest in 382 properties comprising 261 million square feet of gross leasable area in North America, Europe and Asia.

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