January 5, 2021
Brookfield Asset Management and institutional partners have offered to take Brookfield Property Partners (BPY) private in a deal valued at $5.9 billion. The asset manager would acquire all of the limited partnership units of BPY, its flagship listed real estate company, at $16.50 per BPY unit.
Nick Goodman, CFO of Brookfield, stated, “The privatization will allow us to have greater flexibility in operating the portfolio and realizing the intrinsic value of BPY’s high-quality assets.”
BPY has roughly $88 billion in assets, including office buildings, malls, self-storage facilities and logistics hubs. CNBC reported that due to the effects of the COVID-19 pandemic, the value of many of BPY’s properties has fallen, with retail and office seen as especially risky bets. BPY’s shares are trading on Nasdaq at about 20% below a year ago, reported CNBC.
BPY said Monday that it had formed a special committee to study Brookfield’s proposal.
Pictured: Brookfield Place in Lower Manhattan.
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