The Real Deal New York

Brookfield Property looks to swallow Brookfield Office for $5B

Consolidation would create one of country's largest commercial landlords
September 30, 2013 11:10AM

Bermuda-based Brookfield Property Partners has offered to buy the remaining shares of New York-based Brookfield Office Properties, a consolidation that would create one of the country’s largest commercial landlords. Brookfield Property currently owns 51 percent of the commercial landlord, whose assets include massive Financial District mixed-use Project Brookfield Place.

Brookfield Property was spun off from Toronto-based Brookfield Asset Management this year to hold commercial real estate assets, according to the statement. The acquisition will create a combined entity with 330 million square feet of office, retail and industrial space on four continents, the company said.

Brookfield Property intends to submit a tender offer today for the real estate investment trust’s shares, in stock or cash, at a value of $19.34 each, according to a statement today. The deal is valued at $5 billion, a 15 percent premium over Brookfield Office’s closing price on Sept. 27.

“The combination of these leading commercial real estate platforms will create a diversified portfolio of best-in-class real estate for investors seeking attractive risk-adjusted returns,” Ric Clark, chief executive officer of Brookfield Property, said in the statement seen by Bloomberg News.

Brookfield Property also holds stakes in General Growth Properties, the country’s second-largest mall owner, which last month bought Jared Kushner and CIM Group’s 200 Lafayette Street for $150 million. [Bloomberg News]Hiten Samtani