BROOKFIELD Property Partners yesterday offered to buy the 49 per cent of Brookfield Office Properties (BPO) it does not already own for $5bn (£3.1bn) in a deal that would create one of the world’s largest commercial property firms.
Both companies are subsidiaries of Toronto-based Brookfield Asset Management which manages about $175bn in power, property, infrastructure and private equity assets.
Brookfield Asset Management spun off Brookfield Property earlier this year to hold its commercial property assets, including its 51 per cent stake in BPO.
The latter made its first foray into the UK market last year by buying Hammerson’s London office portfolio for £518m, including the 99 Bishopsgate tower, 125 Old Broad Street – the former Stock Exchange – and Leadenhall Court.
Brookfield Properties said it has made a $19.34 per share offer in cash and shares, which reflects a 15.3 per cent premium over BPO’s closing price on Friday.
“The offer provides an attractive opportunity for BPO shareholders to exchange their common shares for an interest in our flagship global property company and cash,” said Ric Clark, chief executive of Brookfield Property Group.
The combined group will hold more than 330m square feet of office, retail, industrial and residential assets across four continents, the companies said.