BANKRUPT US retail landlord General Growth Properties has moved a step closer to extinguishing its debt burden after a proposed injection of $US3.93 billion ($A4.3 billion) from property investment funds.
This has made it a much less attractive takeover target for Westfield.
According to General Growth, it received funding proposals from two parties, the US-based Fairholme Capital Management and Pershing Square Capital Management, to inject the much-needed equity into the group, equal to $US15 per GGP share.
The proposed funding comes as General Growth, which went into bankruptcy last year, fights off a hostile $US10 billion takeover offer from rival Simon Property.
As part of that battle, General Growth has opened a data room for other interested parties to do their own due diligence.
Westfield, while not confirming, is said to have taken up that opportunity to review the assets of General Growth.
Real estate analysts said recently that Westfield was unlikely to make a full bid for General Growth, although the shopping centre owner might be interested in certain assets.
But with the latest funding deal by General Growth, any interest by Westfield could be slipping away.
There has been market speculation that Westfield is looking at a possible capital raising, but the group declined to comment.
