Brookfield Property, Simon Property acquire JCPenney



In a deal worth over $1 billion, two commercial real estate companies have reached a deal with retail business JCPenney following its file for bankruptcy in May, agreeing to take over its real estate assets and all of its owned distribution centers.

Simon Property Group and Brookfield Property Partners have acquired well-known retail chain JCPenney in a deal worth $1.75 billion.

The two commercial real estate companies reached an agreement in principle to sell JCPenney through a court-supervised sale process.

JCPenney expects to execute a “stalking horse” asset purchase agreement, meaning it plans to track an executed letter of intent.

The letter includes that Brookfield and Simon intend to acquire all of JCPenney’s retail and operating assets for the settled $1.75 billion.

Included in the letter is an agreement contemplating the formation of a separate real estate investment trust and a property holding company, which will include 161 of the Company’s real estate assets and all of its owned distribution centers.

This separation will be owned by the company’s Ad Hoc Group of First Lien Lenders.