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Acquisitions

Brookfield reaches deal to buy GGP

Merger will results in $100B worth of real estate assets

Brookfield Executive Team (Credit: The Globe and Mail)

Brookfield Property Partners has reached a deal to buy the rest of General Growth Properties for $9.25 billion, according to Bloomberg. As of the end of 2017, Brookfield already owned 34 percent of GGP.

Dig Deeper: The $23.50-a-share cash portion of the deal marks a 24 percent premium over the stock’s closing price before news of a potential deal was reported.

Heard on the Street: Sandler O’Neill’s Alexander Goldfarb: “Brookfield had no one to bid against… They weren’t going to bid against themselves — they were just wearing out the market.” Well played.

Bottom Line: The merger will result in $100 billion in real estate assets globally with an annual net operating income of about $5 billion.

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