Blockbuster mall deal: General Growth Properties receives $14.8 billion bid
Brookfield Property Partners has bid $14.8 billion bid to acquire all the remaining shares in General Growth Properties that it currently doesn't own.
Brookfield has offered to pay $23 per share for the remaining 66% of real estate investment trust GGP — half in cash and half in equity. The transaction would create one of the largest listed property companies in the world, with an ownership interest in almost $100 billion of premier real estate assets globally and annual net operating income of approximately $5 billion.
“Brookfield’s access to large-scale capital and deep operating expertise across multiple real estate sectors combined with GGP’s high-quality retail asset base will allow us to maximize the value of these irreplaceable assets," stated Brian Kingston, CEO, Brookfield Property Group. "We are excited about the opportunity to leverage our expertise to grow, transform or reposition GGP’s shopping centers, creating long-term value in a way that would not otherwise be possible.”
Some analysts speculated that Brookfield's initial bid would not be enough.
"The $23 price should set a floor for GGP shares," Boenning & Scattergood analyst Floris van Dijkum said in a report by CNBC. "We believe this initial offer is too low while [Brookfield] has a history of raising its offer for takeover candidates."
GGP currently has a market value of roughly $21 billion, according to CNBC.
GGP has formed a special committee of independent directors to review the bid. It has retained Goldman Sachs as a financial advisor.
Brookfield has offered to pay $23 per share for the remaining 66% of real estate investment trust GGP — half in cash and half in equity. The transaction would create one of the largest listed property companies in the world, with an ownership interest in almost $100 billion of premier real estate assets globally and annual net operating income of approximately $5 billion.
“Brookfield’s access to large-scale capital and deep operating expertise across multiple real estate sectors combined with GGP’s high-quality retail asset base will allow us to maximize the value of these irreplaceable assets," stated Brian Kingston, CEO, Brookfield Property Group. "We are excited about the opportunity to leverage our expertise to grow, transform or reposition GGP’s shopping centers, creating long-term value in a way that would not otherwise be possible.”
Some analysts speculated that Brookfield's initial bid would not be enough.
"The $23 price should set a floor for GGP shares," Boenning & Scattergood analyst Floris van Dijkum said in a report by CNBC. "We believe this initial offer is too low while [Brookfield] has a history of raising its offer for takeover candidates."
GGP currently has a market value of roughly $21 billion, according to CNBC.
GGP has formed a special committee of independent directors to review the bid. It has retained Goldman Sachs as a financial advisor.