Rouse agrees to Brookfield takeover bid

Asset manager buying out mall REIT at $18.25 per share in deal valued at $2.8B

TRD LOS ANGELES /
Feb.February 25, 2016 11:30 AM

From the New York site: Mall landlord Rouse Properties has accepted Brookfield Asset Management’s private takeover of the publicly traded real estate investment trust for $18.25 per share, which values the deal at about $2.8 billion, including debt.

A special committee of Rouse’s board of directors unanimously approved Brookfield’s all-cash proposal, the New York-based retail REIT announced Thursday, with the company entering into a definitive agreement to be acquired by the Toronto-based asset manager.

Brookfield will acquire all outstanding shares of Rouse common stock that it does not already own at a price of $18.25 per share – an improvement on Brookfield’s original proposal of $17 per share put forth last month. Brookfield is already Rouse’s largest shareholder, holding around one-third of the company’s common stock.

The purchase represents a roughly 35 percent premium on Rouse’s closing stock price as of Jan. 15, the day before Brookfield lodged its initial, unsolicited offer for the REIT.

While the deal is valued at around $2.8 billion, when factoring in Rouse’s $1.64 billion in indebtedness, the $18.25 per share officer values the retail landlord at $1.06 billion, according to Reuters. The transaction is slated for completion in the third quarter of this year pending the approval of Rouse shareholders.

Brookfield has roughly $225 billion under management globally, while Rouse – which was spun off from fellow retail REIT General Growth Properties in 2012 – owns a portfolio of 35 malls and retail centers across the U.S., including eight in California. – Rey Mashayekhi


Related Articles

arrow_forward_ios

Brookfield drops $46M for Santa Fe Springs business park

Warren Buffett pays $130M to buy Brookfield out of brokerage

Brookfield Asset Management unloads Norwalk Corporate Plaza for $26M

When a suitor calls: The calculus behind Brookfield’s Forest City play

Brookfield in talks to buy Forest City

Brookfield and Onex could pay up to $3.7B for WeWork rival

“We’re number two, we try harder”: How Brookfield is trying to regain the top investor crown

Brookfield in talks to take over GGP

arrow_forward_ios