Indianapolis-based Simon Property Group Inc. (NYSE: SPG) is again adding to its portfolio. The Wall Street Journal reports the mall owner and Bermuda-based commercial real estate company Brookfield Property Partners LP (Nasdaq: BPY) have agreed to acquire the bankrupt J.C. Penney Co. in an $800 million deal.
The retailer filed for Chapter 11 bankruptcy protection in May. Simon and Brookfield are reportedly paying $300 million in cash and assuming $500 million in debt to acquire the company.
The publication reports Simon and Brookfield, which are the retailer’s landlords, will own about 490 of J.C. Penney’s remaining 650 stores.
As part of the deal, the remaining 160 stores, as well as the company’s distribution centers, will be owned by a group of lenders in exchange for forgiving some of the retailer’s $5 billion in debt, according to the WSJ.