People walk through Brookfield Place Pavilion at the West Trade Center pedestrian movement link in New York City.
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Brookfield Asset Management said Monday that they have made an offer to the commercial real estate arm of Brookfield Property Partners in a $ 5.9 billion contract.
The Canadian asset management company is offering $ 16.50 for each share of Brookfield assets they do not already own.
“The privatization will allow us greater flexibility in operating the portfolio and realizing the intrinsic value of BPY’s high-quality assets,” Brook Good Management CFO Nick Goodman said in a statement.
Brookfield owns approximately $ 88 billion in property, including office buildings, malls, self-storage facilities and logistics hubs. As a result of Covid ‘s pandemic effects, the value of many of its properties has fallen. Sales and office space are seen as particularly promising, with vacancies rising and more people switching to buying and working from home.
On the Nasdaq, Brookfield Property shares are down about 20% from a year ago. The stock rose more than 15% in pre-sale trading on Monday, while the shares of Brookfield Asset Management remained unchanged.
In a separate press release, Brookfield Property said their board has set up an independent committee to review the proposal.
The price of $ 16.50 per unit represents a base price of 14.9% and 14.0%, respectively, to the closing price of Brookfield Property shares on the Toronto and Nasdaq Stock Exchange from December 31. Shareholders will be able to choose $ 16.50 receive in cash for each Brookfield Property Unit, 0.40 Brookfield Class A shares, or 0.66 Brookfield Property units with a liquidation option of $ 25 per unit, Brookfield Asset Management said.
Brookfield Asset Management, which owns about $ 575 billion in assets under management, said it did not propose to acquire other funds from Brookfield Property and its subsidiaries. These are expected to remain.