Brookfield Property Partners to buy GGP

Brookfield already owns one-third of GGP, which is one of the largest retail landlords in the U.S. 

“With an ownership interest in approximately $90 billion in total assets and annual net operating income of more than $4 billion, the combined company will be one of the world’s largest commercial real estate enterprises,” Brookfield said in a press release.

"We are pleased to have reached an agreement and are excited about combining Brookfield's access to large-scale capital and deep operating expertise across multiple real estate sectors with GGP's portfolio of irreplaceable retail assets," said Brookfield Property Partners CEO Brian Kingston on Monday in a company statement.

The acquisition marks further consolidation in the retail real estate industry. In December Unibail-Rodamco agreed to buy Westfield Corp. for nearly $16 billion.

Under this latest deal, GGP shareholders can elect to receive $23.50 per GGP common share in cash, or else choose between one Brookfield unit or one share of a new Brookfield U.S. REIT security.

“This is a compelling transaction that enables GGP shareholders to receive premium value for their shares and gives them the ability to participate in the long-term upside of their investment,” said Kingston. “We are pleased to have reached an agreement and are excited about combining Brookfield’s access to large-scale capital and deep operating expertise across multiple real estate sectors with GGP’s portfolio of irreplaceable retail assets.”

Daniel B. Hurwitz, lead director and chairman of the GGP special committee, commends the benefits of this deal for the shareholders. “Since receiving Brookfield’s initial proposal in November, the Special Committee has conducted extensive due diligence, specifically evaluating the optimal consideration structure for GGP’s shareholders," Hurwitz said in a prepared statement. "After careful consideration, assisted by our independent advisors, the Special Committee determined that Brookfield’s improved proposal, which includes an increase in the cash portion of the consideration and the ability to receive shares in a newly listed REIT entity, provides GGP shareholders with certainty of value, as well as upside potential through ownership in a globally diversified real estate company. We are pleased to have reached this agreement, which we believe is in the best interests of GGP and our shareholders.”