Brookfield Property seeks to buy Brookfield OfficeAP , Associated Press
Sep. 30, 2013 9:33 AM ET
NEW YORK (AP) — Brookfield Property Partners is offering to buy Brookfield Office Properties for about $5 billion in cash and stock.
Brookfield Property, which already owns 51 percent of Toronto-based Brookfield Office and says the deal would make it one of the biggest global commercial real estate companies in the world. Bermuda-based Brookfield Property estimates it would have about $45 billion in total assets if the deal goes through.
The offer values Brookfield Office Properties at $19.34 per share, a 15.3-percent premium from Friday's closing price. Brookfield Office unit holders can get 1 unit of Brookfield Property Partners or $19.34 per share in cash for every Brookfield Office Properties unit they own. Brookfield Property said it will pay up to $1.7 billion of the total in stock.
Shares of Brookfield Office Properties rose $2.78, or 16.6 percent, to $19.55 shortly after the opening bell. Brookfield Property Partners LP shares added 21 cents $19.55.
Brookfield Property Partners said the deal will improve the trading liquidity of its units, giving it greater access to capital markets and reduce the cost of the capital the company uses to fund its growth. Brookfield Property said it has interests in more than 300 office and retail properties.
Brookfield Asset Management Inc. spun off Brookfield Property Partners, its commercial real estate unit, earlier this year.
In August, Brookfield Property Partners agreed to buy Industrial Developments International of Japan for $1.1 billion. That deal will make Brookfield one of the world's biggest owners of industrial and logistics facilities.