GGP rejects Brookfield’s $15B buyout offer

Talks continue as experts have long expected Brookfield to make a second and final offer

New York /
Dec.December 11, 2017 09:30 AM

Ric Clark and Sandeep Mathrani (Credit: Getty Images)

General Growth Properties rejected the $14.8 billion buyout offer from Brookfield Property Partners, which is now considering making a new bid.

The move is not exactly a surprise, as industry experts considered the $23-per-share offer Brookfield made last month to be a lowball bid, and expected the company to make a second and final offer, Reuters reported.

Brookfield offered cash and stock to buy the 66 percent of GGP that it does not already own. Negotiations are expected to continue between the two companies, though they don’t plan to make a new announcement unless the talks lead to a deal or fall off the table, sources told Reuters.

If the deal goes through, it would create a company with an interest in roughly $100 billion worth of real estate assets around the world and a net operating income of about $5 billion, according to Brookfield.

GGP shares on Friday ended trading at $23.43, for a market capitalization of $22.2 billion. Like many other real estate investment trusts, its shares have underperformed compared to the value of its real estate assets, and the company has faced challenges specific to the retail sector such as exposure to troubled companies like Sears Holdings Corp.

Experts speculate that Brookfield would look to leverage its expertise in multifamily and office development to reposition struggling shopping centers into live-work-play properties. [Reuters]Rich Bockmann


Related Articles

arrow_forward_ios
Knotel CEO Amol Sarva (Sasha Maslov, Knotel, iStock)

Evictions, unpaid vendors and back rent: Lawsuits mounting against Knotel

Evictions, unpaid vendors and back rent: Lawsuits mounting against Knotel
From left: former Vornado CFO Joseph Macnow; ; Howard Hughes Corporation CEO David O’Reilly, former Cushman & Wakefield CFO Duncan Palmer (Photos via Vornado, Howard Hughes, Cushman & Wakefield)

Leadership shake-ups hit Vornado, Cushman & Wakefield and Howard Hughes

Leadership shake-ups hit Vornado, Cushman & Wakefield and Howard Hughes
B6's Paul Massey and Tom Gammino (Photos via B6; Jll)

Tom Gammino joins Paul Massey’s B6

Tom Gammino joins Paul Massey’s B6
Residential construction accounted for 44% of spending in October. (iStock)

Housing drives rise in construction spending October

Housing drives rise in construction spending October
Ken TaeHern Kim and Zhongyuan Li with Fairmont San Francisco (Linkedin, Google Maps)

Mirae Asset wins lawsuit over scrapped $5.8B Anbang hotel deal

Mirae Asset wins lawsuit over scrapped $5.8B Anbang hotel deal
Foot traffic in Union Square, the Flatiron District and Chelsea is down by 50% from February. (Getty)

Foot traffic remains low in prime Manhattan neighborhoods

Foot traffic remains low in prime Manhattan neighborhoods
Shadow inventory in Manhattan’s flex-office market is contributing to the rising overall availability rate (iStock)

WeWork and Co’s woes add to rising shadow office inventory

WeWork and Co’s woes add to rising shadow office inventory
About 25 percent of employees had returned to work as of Nov. 18 (Getty; iStock)

Offices remain empty, and big cities are feeling the crunch

Offices remain empty, and big cities are feeling the crunch
arrow_forward_ios

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

Loading...