The largest shareholder in high-end shopping mall owner Macerich Co. sold its entire stake for nearly $ 500 million when the stock soared after being offered on Reddit.
Ontario Education Pension Plan sold 24.56 million shares on Wednesday at an average price of $ 20.25 per share. amended 13D. The Canadian fund owned 16.4% of the company, according to data compiled by Bloomberg.
Macerich, a real estate investment trust in Santa Monica, California, has been struggling for years and has been plagued by a pandemic that has forced shopping malls to shut down and driven consumers to e-commerce. The share lost 84% of its value over a period of three years to 31 December 2020.
Then comments started appearing on Reddit boards, including r / wallstreetbets, the subreddit now known for an astonishing increase in GameStop Corp., AMC Entertainment Holdings Inc. and other stocks with a large short circuit or bad advantage.
Macerich shares rose 68% in four trading sessions and reached about $ 26 on frenetic volume on Wednesday, enabling Ontario teachers to come out.
“We were a long-term investor at Macerich, and in this whole relationship they were a valued partner,” Dan Madge, a spokeswoman for the Teachers Fund, said in a written statement. “We continue to expand and diversify our global real estate platform and grow our existing Canadian real estate businesses.”
A Reddit user Macerich was named “GameStop’s landlord” and said it “has the potential to offer a GME-like short print, but with better downside protection.” The short stake is 57% of the float, according to data compiled by Bloomberg.
Lower rents and increased vacancies plagued mall owners during the pandemic. Macerich owns 52 malls across the U.S., mostly in cities, according to its website, including Kings Plaza Mall in Brooklyn and The Shops at North Bridge in Chicago.
Macerich fell 15% to $ 19.01 on Thursday.
– Assisted by Natalie Wong and Scott Deveau
(Updates with comments from the spokesperson for teachers in the sixth paragraph)