Brookfield Properties Buys GGP For $9.25B

A few months after General Growth Properties (GGP) rejected a buyout offer from global real estate investment firm Brookfield Property Partners, the two reached a deal on Monday (March 26). Brookfield said it would purchase GGP for $9.25 billion in cash, CNBC reported.

“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,” Brookfield Property Partners CEO Brian Kingston said in a statement, according to CNBC.

Prior to the deal, Brookfield already owned about one-third of GGP. Following the news, GGP’s stock rose 5 percent, while Brookfield’s stock fell.

With the new deal, those who own GGP shares can either receive $23.50 for each of their shares in cash, one Brookfield share or shares in a new company. Brookfield wants to create a new real estate investment trust with the ticker symbol “BPR.”

The news comes a few months after GGP rejected a buyout offer from Brookfield, according to news from CNBC in December 2017. The $14.8 billion offer was to purchase the 66 percent of GGP shares that Brookfield Property Partners, GGP’s largest stakeholder, did not currently own.

One of the largest shopping center owners and operators in the U.S., Chicago-based GGP turned down the $23-per-share cash and stock offer on Nov. 11. GGP’s special committee of its board of directors called that initial offer last year “inadequate.”

Shopping mall owners and operators have seen a downturn in sales and foot traffic with the rise of eCommerce. Office and retail properties owner and operator Brookfield noted in November that the acquisition deal would create growth for its company, as it looks to help GGP’s shopping centers transition into the modern days of retail.