Brookfield made an unsolicited bid<\/a> in November for GGP.<\/p>\nWhen GGP rejected that offer, Green told CPE<\/em> it was \u201cjust the first volley\u201d<\/em> and predicted Brookfield would have to sweeten the deal. This week, Green said he wasn\u2019t surprised about the proposed acquisition.<\/p>\n\u201cI\u2019m not sure if in fact it\u2019s really a better deal as much as (GGP) waited for some time to pass to see if someone stepped up,\u201d <\/em>Green said. With no other suitors, \u201cthere certainly is more urgency to figure out a solution and Brookfield is probably the only solution as they already own so much of it,\u201d <\/em>he added.<\/p>\nA compelling transaction<\/h2>\n
The deal, which still must be approved by GGP shareholders, calls for GGP shareholders to receive $23.5 a share in cash, or either one Brookfield unit or one share of a new U.S. REIT that will be formed for each GGP share owned. The offer is subject to proration based on aggregate cash payment of roughly $9.3 billion, up from $7.4 billion in the November offer that also suggested shares paid at $23.0 per share.<\/p>\n
\u201cThis is a compelling transaction that enables GGP shareholders to receive premium value for their shares and gives them the ability to participate in the long-term upside of their investment,\u201d<\/em> Brian Kingston, Brookfield Property Partners CEO, said in a prepared statement. \u201cWe are pleased to have reached an agreement and are excited about combining Brookfield\u2019s access to large-scale capital and deep operating expertise across multiple real estate sectors with GGP\u2019s portfolio of irreplaceable retail assets.\u201d<\/em><\/p>\nGGP owns about 125 high-quality retail properties comprising approximately 121 million square feet of space in 40 states. With a total enterprise value of $41.1 billion as of Dec. 31, GGP\u2019s assets include Water Tower Place, Chicago; Tysons Galleria, McLean, Va.; Ala Moana Center, Honolulu; Perimeter Mall, Atlanta; The Woodlands Malls in Woodlands, Texas; and Fashion Show and Grand Canal Shoppes, both in Las Vegas.<\/p>\n
A global leader<\/h2>\n
The combined company would have an ownership interest in approximately $90 billion in total assets and an annual net operating income of more than $4 billion, making it one of the world\u2019s largest commercial real estate enterprises. If approved by GGP shareholders, the deal is expected to close early in the third quarter.<\/p>\n
GGP\u2019s Special Committee, formed in November after receiving Brookfield\u2019s initial proposal, reviewed the new offer along with input from its independent advisors and unanimously recommended shareholders approve the transaction.<\/p>\n
Daniel Hurwitz, lead director & chairman of the special committee, said the special committee, \u201cdetermined that Brookfield\u2019s improved proposal, which includes an increase in the cash portion of the consideration and the ability to receive shares in a newly listed REIT entity, provides GGP shareholders with a certainty of value, as well as upside potential through ownership in a globally diversified real estate company.\u201d<\/em><\/p>\nWeil, Gotshal & Manges LLP, Goodwin Procter LLP and Torys LLP are serving as legal counsel to Brookfield and PwC is serving as the company\u2019s tax advisor.<\/p>\n
Goldman, Sachs & Co. is serving as financial advisor and Simpson Thacher & Bartlett LLP is legal counsel to GGP\u2019s special committee. Citigroup Global Markets Inc. is GGP\u2019s financial advisor and Sullivan & Cromwell LLP is its legal counsel.<\/p>\n
The Brookfield-GGP deal comes at a time of increased consolidation<\/a> among shopping center and mall owners. In December, Unibail-Rodamco SE, Europe\u2019s largest listed commercial property group, said it was buying Australia\u2019s Westfield Corp. for nearly $16 billion to create a global shopping center owner with a gross market value of $72.2 billion and 104 assets across 27 of the world\u2019s top markets. Westfield has interests in 35 shopping centers in London and the U.S. That deal is expected to close in the second quarter.<\/p>\n","protected":false},"excerpt":{"rendered":"The combined company will have ownership interests in some $90 billion worth of assets and an annual net operating income of more than $4 billion.<\/p>\n","protected":false},"author":1068,"featured_media":1004214531,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21743,21808,21783,23891,21742,21749],"tags":[33091,38610,36504],"class_list":["post-1004214456","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-featured","category-investment","category-national","category-latest","category-retail","tag-brookfield-property-partners","tag-ggp","tag-jeff-green"],"acf":[],"yoast_head":"\n
Brookfield Strikes Deal to Acquire Rest of GGP - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/brookfield-strikes-deal-to-acquire-rest-of-ggp\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Brookfield Strikes Deal to Acquire Rest of GGP\" \/>\n<meta property=\"og:description\" content=\"The combined company will have ownership interests in some $90 billion worth of assets and an annual net operating income of more than $4 billion.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/brookfield-strikes-deal-to-acquire-rest-of-ggp\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2018-03-28T10:27:42+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T10:51:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/03\/shopping-mall.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gail Kalinoski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/brookfield-strikes-deal-to-acquire-rest-of-ggp\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/brookfield-strikes-deal-to-acquire-rest-of-ggp\/\",\"name\":\"Brookfield Strikes Deal to Acquire Rest of GGP - 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Gail has been a freelance writer and editor for more than 20 years, contributing to daily websites, magazines, weekly business newspapers, market intelligence newsletters, research reports, monthly B-to-B and consumer magazines. Earlier in her career, Gail worked for Gannett Corp. as an editor and reporter for 15 years. 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Four months after Brookfield Property Partners came courting GGP Inc. and was initially spurned, Chicago-based mall owner GGP has accepted Brookfield\u2019s offer to acquire the remaining portion it didn\u2019t already own in a deal valued at about $15 billion.<\/p>\n