Chicago — Brookfield Property Partners LP (NYSE: BPY) has made an unsolicited proposal to acquire GGP Inc. (NYSE: GGP) for $14.8 billion.
The offer is made up of $7.4 billion in direct share purchases at $23 per share, as well as $7.4 billion in shares in the combined company post-acquisition. Brookfield already owns approximately 34 percent of GGP.
The combined company would be owned approximately 30 percent by existing GGP shareholders. The transaction is subject to the negotiation and execution of transaction documents, as well as customary approvals. Citigroup Global Markets Inc. is serving as financial advisor and Sullivan & Cromwell LLP is serving as legal counsel to GGP.
The transaction would boost BPY’s portfolio to almost $100 billion of real estate assets globally and an annual net operating income of approximately $5 billion, according to BPY.
“Brookfield’s access to large-scale capital and deep operating expertise across multiple real estate sectors combined with GGP’s high-quality retail asset base will allow us to maximize the value of these irreplaceable assets,” says Brian Kingston, CEO of Brookfield Property Group. “We are excited about the opportunity to leverage our expertise to grow, transform or reposition GGP’s shopping centers, creating long-term value in a way that would not otherwise be possible.”
Chicago-based GGP is focused exclusively on owning, managing, leasing and redeveloping retail properties throughout the United States. GGP’s stock price closed on Friday, Nov. 10 at $22.20 per share, down from $26.24 per share one year ago.
BPY is a global real estate company with approximately $68 billion in total assets. BPY’s stock price closed on Friday, Nov. 10 at $23.68 per share, up from $20.71 per share one year ago.
— Kristin Hiller