GENERAL GROWTH PROPERTIES
BANKRUPTCY / HOWARD HUGHES HEIRS
ROLE
Engaged by the heirs of the Howard Hughes Estate to represent their interests in the General Growth Properties bankruptcy.
OBJECTIVE
Assert and maximize the valuation of the Hughes heirs’ claim for the residual payment due from the sale of Summerlin. Located in Las Vegas and one of the pre-eminent master planned communities in the United States, Summerlin comprises 22,500 acres.
APPROACH
•Worked with team of appraisers, attorneys and investment bankers to develop and implement a strategy to maximize the claim and determine the value of the undeveloped 7,500-acre portion of Summerlin. The Rouse Company bought the remaining assets of the Howard Hughes Corp. in 1996. Rouse was subsequently purchased by General Growth in 2004. General Growth assumed the obligations to pay the Hughes Heirs 50% of the proceeds of the sale of the Summerlin land, with a final appraisal and payment at the end of 2009. The amount of the final payment was the subject of the claim.
•Madden’s extensive knowledge of mixed use development, land development and home building provided valuable practical insight in maximizing valuation.
RESULT
Madden’s expertise, insight, creative approach and 30-year industry experience was instrumental in maximizing the settlement, culminating in a $460 million valuation and $220 million net payment to the Howard Hughes heirs.