{"id":1004222115,"date":"2018-04-20T04:16:26","date_gmt":"2018-04-20T12:16:26","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004222115"},"modified":"2022-12-09T02:54:22","modified_gmt":"2022-12-09T10:54:22","slug":"brookfield-secures-partners-for-15b-purchase-of-ggp","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/brookfield-secures-partners-for-15b-purchase-of-ggp\/","title":{"rendered":"Brookfield Secures Partners for $15B Purchase of GGP"},"content":{"rendered":"

By Barbra Murray<\/em><\/p>\n

\"Bayside<\/a>

Bayside Marketplace in Miami<\/p><\/div>\n

Less than a month after entering into an agreement to acquire retail property owner<\/a> GGP Inc., Brookfield Property Partners LP has secured a handful of investors to help finance the $15.2 billion transaction, according to Bloomberg<\/em><\/a>. The California Public Employees\u2019 Retirement System, an entity of CBRE Group Inc., Future Fund and TIAA affiliate TH Real Estate have all committed to investing in certain shopping malls in GGP\u2019s portfolio.<\/p>\n

Brookfield, which already owns 34 percent of GGP\u2019s outstanding shares, approached GGP with a non-binding proposal to acquire the company\u2019s remaining common stock in November 2017. In March 2017, Brookfield increased the cash-stock offer to $23.50 per GGP share at a fixed cash consideration of $9.2 billion, and the issuing of approximately 254 million Brookfield units or shares in the resulting U.S. REIT.\u00a0 The transaction boils down to a total consideration of roughly 61 percent cash and approximately 39 percent shares or units.<\/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, CEO of Brookfield Property Partners LP, said in a prepared statement announcing the agreement in March. The deal, Kingston added, would unite \u201cBrookfield\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>\n

Record numbers<\/h2>\n

GGP\u2019s portfolio of fully and partially owned retail assets consisted of 125 locations totaling 122 million square feet at the close of 2017. The collection of Class A properties runs the gamut and spans the U.S., with such shopping centers as the 205,400-square-foot Bayside Marketplace in Miami, and the Fashion Show Mall in Las Vegas<\/a>, a 1.9 million-square-foot property GGP acquired in a joint venture with TIAA Global Asset Management for $1.2 billion in 2016.<\/p>\n

Brookfield had noted upon announcing the acquisition deal with GGP that it would finance the purchase with proceeds from loans through a consortium of lenders and roughly $4 billion from joint venture equity partners; however, Brookfield did not name the partners at the time.<\/p>\n

Per Brookfield\u2019s March announcement, the acquisition of GGP is scheduled to reach completion in the third quarter of 2018. The newly combined company will hold the distinction of being one of the largest commercial real estate entities<\/a> in the world, with the sole or partial ownership of assets valued at an aggregate $90 billion, and an annual net operating income totaling more than $4 billion.<\/p>\n

Mall mergers
\n<\/strong><\/h2>\n

Brookfield and partners\u2019 planned acquisition of GGP comes on the heels of another mega-mall merger. In late 2017, Unibail-Rodamco SE, the largest listed commercial property company in Europe, announced an agreement to acquire Sydney-based shopping center group Westfield Corp. in a $25 billion transaction. More such deals may very well be on the horizon.<\/p>\n

According to a fourth quarter report by commercial real estate services firm Cushman & Wakefield, <\/em>M&A activity will skyrocket in 2018. \u201cSmart players are looking at the stock values of companies that are in great shape but are undervalued,\u201d <\/em>per the report. \u201cWe already saw this on the landlord side with Unibail-Rodamco acquiring rival Westfield Mall.\u201d<\/em><\/p>\n

Image courtesy of Zyscovich Architects<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The company has obtained commitments from four investment entities, including CBRE and TH Real Estate, to help finance its planned acquisition of the retail property owner. <\/p>\n","protected":false},"author":969,"featured_media":1004222124,"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":[33091,32799,38610,34170],"class_list":["post-1004222115","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-cushman-wakefield","tag-ggp","tag-unibail-rodamco"],"acf":[],"yoast_head":"\nBrookfield Secures Partners for $15B Purchase 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-secures-partners-for-15b-purchase-of-ggp\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Brookfield Secures Partners for $15B Purchase of GGP\" \/>\n<meta property=\"og:description\" content=\"The company has obtained commitments from four investment entities, including CBRE and TH Real Estate, to help finance its planned acquisition of the retail property owner.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/brookfield-secures-partners-for-15b-purchase-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=\"2018-04-20T12:16:26+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T10:54:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/04\/Bayside-Marketplace-Miami.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=\"Barbra Murray\" \/>\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-secures-partners-for-15b-purchase-of-ggp\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/brookfield-secures-partners-for-15b-purchase-of-ggp\/\",\"name\":\"Brookfield Secures Partners for $15B Purchase of GGP - 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