Brookfield makes $15B bid to buy remainder of GGP

Toronto-based giant offers $23 per share for remaining 66%

TRD New York /
Nov.November 13, 2017 08:00 AM

From left: Ric Clark, Sandeep Mathrani and 685 Fifth Avenue (Credit: Getty Images and Thor Equities)

Brookfield Property Partners made a $14.8 billion offer Saturday to buy the remaining 66 percent of shares that it doesn’t already own in GGP.

Brookfield offered to pay $23 per share, half of it in cash and the other half in equity, the Wall Street Journal reported. Any deal would need the approval of a majority of GGP shareholders not affiliated with Brookfield.

The move comes after reports surfaced last week that Brookfield was in early talks to buy the retail real estate investment trust and take it private. Shares of GGP closed at $22.20 after surging following the reports.

Brookfield during the third quarter increased its stake in GGP from 29 percent. The Toronto-based real estate firm has been an investor in GGP since 2010, when it struck a deal that pulled the Chicago-based mall owner out of bankruptcy.

Rumors began to circulate in early 2016 that Brookfield was considering a GGP buyout, but company executives dispelled the notion saying they were “happy with our GGP investments in their current form.”

Part of the thinking behind this latest proposal is that it would allow Brookfield to add features like office space, entertainment and apartments to GGP’s malls which, like others across the country, has struggled with store closings.

GGP’s taken space back from poor-performing department stores and replaced them with gyms, high-end grocery stores and fast-fashion retailers. [WSJ] – Rich  Bockmann


Related Articles

arrow_forward_ios
Authentic Brands Group CEO Jamie Salter with Brooks Brothers, J.C. Penney, and Aeropostale stores (Getty)

Mall owners team up with “dead-celebrity dealmaker” but can they rescue moribund retailers?

Mall owners team up with “dead-celebrity dealmaker” but can they rescue moribund retailers?
Brookfield Property Partners' Brian Kingston, Silverstein Properties' Larry Silverstein and Empire State Realty Trust's Anthony Malkin (Getty)

Real estate firms lead cautious return to NYC offices

Real estate firms lead cautious return to NYC offices
Authentic Brands Group CEO Jamie Salter, Simon Property Group CEO David Simon, J.C. Penney CEO Jill Soltau and Brookfield Property Partners CEO Brian Kingston (Getty)

Simon, Brookfield and Authentic Brands in talks to buy J.C. Penney

Simon, Brookfield and Authentic Brands in talks to buy J.C. Penney
Part Two: Brookfield’s Brian Kingston on Manhattan West, Lever House and working from home

Part Two: Brookfield’s Brian Kingston on Manhattan West, Lever House and working from home

Part Two: Brookfield’s Brian Kingston on Manhattan West, Lever House and working from home
666 Fifth Avenue and Brian Kingston (Google Maps, Brookfield)

Brookfield buys out another tenant at 666 Fifth

Brookfield buys out another tenant at 666 Fifth
Brookfield CEO Brian Kingston

Brookfield’s Brian Kingston on the firm’s mall strategy, $5B retail relief plan and response to George Floyd protests

Brookfield’s Brian Kingston on the firm’s mall strategy, $5B retail relief plan and response to George Floyd protests
Brookfield Property Group CEO Brian Kingston (Credit: Brookfield; Unsplash)

Brookfield Property’s Q1 losses come as retail tenants miss payments

Brookfield Property’s Q1 losses come as retail tenants miss payments
Brookfield Property Partners CEO Brian Kingston and two of Brookfield's largest retail assets, Ala Moana Center in Hawaii and Oakbrook Center in Illinois (Credit: Brookfield; iStock)

Behind Brookfield’s critical Covid moment

Behind Brookfield’s critical Covid moment
arrow_forward_ios

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

Loading...