Photographer: Brennan Linsley / AP
Photographer: Brennan Linsley / AP
Largest shareholder in luxury shopping center owner Macerich Co. sold its entire stake for nearly $ 500 million when the stock skyrocketed after being announced on Reddit.
The Ontario Teachers’ Pension Plan sold 24.56 million shares on Wednesday at an average price of $ 20.25 per share, according to details in a 13D changed. The Canadian fund owned 16.4% of the company, according to data compiled by Bloomberg.
Macerich, a real estate investment fund based in Santa Monica, California, has been struggling for years and was hit by a pandemic that forced malls to close and pushed consumers into e-commerce. The shares lost 84% of their value in a three-year period ended December 31, 2020.
Then, comments started appearing on the Reddit forums, including r / wallstreetbets, the subreddit now famous for helping to fuel a surprising increase in GameStop Corp., AMC Entertainment Holdings Inc. and other heavily sold or disadvantaged shares.
Macerich’s shares jumped 68% in four trading sessions and reached around $ 26 at one point on Wednesday in frantic volume – allowing Ontario Teachers to leave.
“We have been a long-term investor in Macerich and, throughout that relationship, they have been a valuable partner,” said Dan Madge, a spokesman for the Teachers fund, in a written statement. “Moving forward, we are focused on scaling and diversifying our global real estate platform and growing our existing Canadian real estate businesses.”
A Reddit user praised Macerich as the “owner of GameStop”, saying it has “the potential to offer a short grip similar to that of GME, but with better protection against disadvantages”. The interest sold is 57% of the float, according to data compiled by Bloomberg.
Lower rents and increased vacancies plagued mall owners during the pandemic. Macerich has 52 shopping centers in the United States, mostly in cities, according to its website, including Kings Plaza Shopping Center in Brooklyn and The Shops at North Bridge in Chicago.
Macerich fell 15% on Thursday to $ 19.01.
– With the help of Natalie Wong and Scott Deveau
(Updates with comments from the teachers’ spokesperson in the sixth paragraph)