January 22, 2016
Brookfield Asset Management, a Canadian alternative asset manager, has reportedly made an all-cash offer to acquire the majority stake of Rouse Properties, Inc. that it doesn’t already own. The unsolicited bid equates to $657-million, and is awaiting execution of mutually acceptable definitive agreements.
The bid values New York-based Rouse at about $1 billion, a valuation that industry observers believe is depressed. If Brookfield is able to consummate a deal, it would be similar to 2010, when the asset manager led a $30-billion restructuring to help General Growth Properties Inc. emerge from bankruptcy protection. Rouse was formed when GGP spun off a portfolio of 30 malls.
According to Brian Kingston, CEO of Brookfield Property Group, “Our offer provides an attractive opportunity for Rouse shareholders to realize a significant premium to recent public market pricing.”