Short Physical Retail

pexels-photo.jpgLast summer, we took a short position on GGP, one of the largest retail mall owners in the U.S. The rationale was American consumers are (i) tapped out, (ii) shifting to online purchases and (iii) looking for more niche, high-quality products and experiences (decline of big brands). GGP does have some well located malls in areas that won’t get hit so hard (i.e., Ala Moana in Honolulu); however, it also has broad exposure to big box retailers including Sears, JC Penney, and Macy’s, that no doubt will affect its portfolio and relatively high levels of debt. GGP went so far as to invest in one of its tenants, Aeropostale, to save the company from shutting down. How many tenants can it save?

Advertisements
This entry was posted in Bankruptcy, Real Estate, Retail mall REITs, Short retail mall REITs, Uncategorized by Ron Mahabir. Bookmark the permalink.

About Ron Mahabir

Ron Mahabir has been focused on major macro trends since the mid-1990’s when he began investing in early-stage Internet companies. In 1999, Ron moved to Tokyo to concentrate on the opportunity provided by the Asian Financial Crisis. He established the Japan office for Colony Capital, a Los Angeles based private equity group which has invested over US$39 billion. As President of Colony Japan, Ron oversaw the acquisition, management and disposition of corporate, non-performing loan and property transactions. In 2004, Ron foresaw the makings of a credit bubble and until late 2006 led an investment in and turnaround of the largest mortgage default communications company in North America, The Walz Group. Since acquisition, The Walz Group has experienced significant growth and was listed at #45 on the Inc. 5000 (2008). In anticipation of the largest emerging macro opportunity, the twin crises in resources and the environment, Ron co-founded Asia Cleantech Capital in late 2006. Based in Singapore, Asia Cleantech is focused on investment in clean forms of transportation and power for the Asia Pacific. Ron Mahabir graduated with honors from the Haas School of Business at the University of California, Berkeley.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s