Brookfield mulling GGP takeover: report

Toronto-based asset management giant lodged similar bid for Rouse this month

TRD New York /
Jan.January 29, 2016 02:16 PM

Fresh off announcing a takeover bid for mall landlord Rouse Properties, Brookfield Asset Management is reportedly looking into an entity-level acquisition of retail giant General Growth Properties.

While deliberations are reportedly not at an advanced stage and there is no certainty that Brookfield will lodge an offer for GGP, the deal would be indicative of how property investors value publicly-listed real estate assets – given how many real estate investment trusts have traded at less than the net value of their holdings.

Toronto-based Brookfield already owns around 34 percent of GGP, according to Reuters, and has approached several potential investment partners, including sovereign wealth funds, to discuss potentially taking GGP private.

The link to sovereign wealth funds is particularly interesting, as the Qatar Investment Authority recently acquired a 44 percent stake in Brookfield’s $8.6 billion Manhattan West mixed-used development on the Far West Side.

Earlier this month, Brookfield lodged a bid to acquire the remaining shares in Bryant Park-based Rouse Properties in a deal that would value the mall REIT at around $1 billion.

As with GGP, Brookfield already owns about a third of Rouse’s outstanding stock, and the two retail landlords have close ties – Rouse was spun off from GGP in 2012.

Chicago-based GGP, which owns 131 properties across the country, saw its shares jump as much as 6.5 percent in wake of the news of a potential Brookfield takeover.

The Sandeep Mathrani-led REIT’s stock has traded down more than 13 percent in the last 12 months, while Barclays downgraded GGP this week citing “formidable headwinds in the mall space.” [Reuters] — Rey Mashayekhi


Related Articles

arrow_forward_ios
Blackstone Group president Jonathan Gray (Getty)

Blackstone makes $1.2B deal with Brookfield for self-storage company

Blackstone makes $1.2B deal with Brookfield for self-storage company
Four New York Plaza (Photo via Hines)

Four New York Plaza office tower hits the market

Four New York Plaza office tower hits the market
Broookfield's Bruce Flatt (Brookfield, iStock)

Brookfield looks to sell life-sciences portfolio for $3B

Brookfield looks to sell life-sciences portfolio for $3B
(Illustration by Maciej Frolow)

Does Brookfield’s balance sheet fully reveal the health of its real estate?

Does Brookfield’s balance sheet fully reveal the health of its real estate?
Brookfield's Ric Clark with 410 Tenth Avenue (Getty; Google Maps)

Brookfield weighs bid for SL Green’s Hudson Yards building

Brookfield weighs bid for SL Green’s Hudson Yards building
A photo illustration of Brookfield's Brian Kingston (Brookfield, iStock)

After $1.5B loss, Brookfield Property Partners buys back $426M of stock

After $1.5B loss, Brookfield Property Partners buys back $426M of stock
(Illustration by Daniel Castro Maia)

How much bigger can Brookfield get?

How much bigger can Brookfield get?
Brookfield's Bruce Flatt (Credit: iStock)

Brookfield makes a full-court press on distress

Brookfield makes a full-court press on distress
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...