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Brookfield Property Partners gives OK to $6.5 billion buyout

Brookfield Asset Management, which manages approximately $575 billion worth of commercial real estate assets globally, is taking full control of its property business, mall giant Brookfield Property Partners. 

Brookfield Asset and Brookfield Property Partners said they have reached agreement for Brookfield to acquire all of the limited partnership units of BPY in a deal that was first proposed in January at $5.9 billion. The price has since gone up.

Investors holding units of the property group can elect to take $18.17 in cash per unit, Brookfield stock or a combination of the two. This represents total consideration of $6.5 billion payable to the unitholders of BPY other than Brookfield and its affiliates,

“We are pleased to have reached agreement with BPY’s independent directors on a transaction we believe is appealing to BPY unitholders in many aspects and allows for greater optionality in how we manage our portfolio of high-quality real estate assets,” said Nick Goodman, CFO of Brookfield Asset Management. “Not only can unitholders choose to receive a meaningful portion of their consideration in cash at a significant premium, but they will also have the option to remain invested in the future upside of our real estate business and alternative asset management franchise.”

The deal is subject to approval by a majority of the public unitholders of Brookfield Property, in addition to other customary closing conditions. It is expected to close in the third quarter of 2021.

Brookfield Properties’ retail portfolio includes 179 retail centers, worth close to $90 billion, predominately in the United States.

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