The largest shareholder of the high-end mall owner Macerich Co. it sold its entire stake for nearly $ 500 million when the stock grew after being promoted on Reddit.
Ontario Teachers’ Pension Plan sold 24.56 million shares on Wednesday at an average price of $ 20.25 per share, according to details from a modified 13D. The Canadian fund owned 16.4% of the company, according to Bloomberg data.
Macerich, a real estate investment trust based in Santa Monica, California, has been fighting for years and was hit by a pandemic that forced malls to close and push consumers toward e-commerce. The share lost 84% of its value over a three-year period ending on 31 December 2020.
Then, comments began to appear on Reddit panels, including r / wallstreetbets, the subreddit now famous for helping to fuel a staggering increase in GameStop Corp., AMC Entertainment Holdings Inc. and other short-circuited or disadvantaged actions.
Macerich shares rose 68% in four trading sessions to about $ 26 at some point on Wednesday at a frantic volume – allowing Ontario teachers to exit.
“I was a long-term investor with Macerich and throughout this relationship they have been a valuable partner,” said Dan Madge, a spokesman for the teachers’ fund, in a written statement. “Going forward, we are focusing on scaling up and diversifying our global real estate platform and developing our existing Canadian real estate business.”
A Reddit user Macerich said he was “the owner of GameStop”, saying it had “the potential to provide a short GME squeeze, but with better protection against disadvantages”. The short interest rate is 57% of the float, according to data compiled by Bloomberg.
Lower rents and rising job vacancies affected mall owners during the pandemic. Macerich owns 52 malls in the United States, mostly in cities, according to its website, including Kings Plaza Mall in Brooklyn and The Shops at North Bridge in Chicago.
Macerich fell 15 percent to $ 19.01 on Thursday.
– With the assistance of Natalie Wong and Scott Deveau
(Updates with comments from the teachers’ spokesperson in the sixth paragraph)