Home Featured Brookfield Property Partners Completes Acquisition of GGP Inc.

Brookfield Property Partners Completes Acquisition of GGP Inc.


Brookfield Property Partners L.P. has completed its acquisition of GGP Inc. In connection with the closing, Brookfield Property REIT Inc. has been created as a public security that is intended to offer economic equivalence to an investment in BPY in the form of a U.S. REIT stock.

According to a prepared statement, BPR’s class A stock and Series A preferred stock will commence trading today on the NASDAQ under the symbols “BPR” and “BPRAP”, respectively.

Results of the elections by holders of GGP common stock for the pre-closing dividend in connection with the transactions were announced on August 23, 2018. The payment date for the pre-closing dividend was August 27, 2018.

The aggregate amount of cash that is payable to security holders in the transactions is $9,250,000,000, including $8,944,556,815 in the pre-closing dividend, $200,000,000, or $0.312 on a per share basis, as merger consideration, and the remainder to holders of GGP restricted stock and holders of securities in GGP’s operating partnership.

Approximately 110 million limited partnership units of BPY were issued in the transactions (inclusive of approximately 21.3 million BPY units issued to Brookfield Asset Management at a price of $23.50 per unit), and approximately 160 million Class A shares of BPR were outstanding at the closing.  In connection with the closing of the transactions, GGP’s existing common stock and Series A preferred stock were delisted from the New York Stock Exchange.

The REIT Wire previously revealed details on the deal in March 26, 2018. We also revealed that GGP’s Q2 earnings report was a “decent swan song,” according to analysts. Analyst firm BMO Capital Markets said that with the BPY takeover, GGP reported a decent swan song, at least relative to the bearish scenario in the deal proxy. “Occupancy is >95%, lease spreads were +12%, and tenant sales (NOI wtd) were up +4%. SSNOI was +4.6%, though term fees likely plated a role,” the analyst said in their review of the Q2 numbers. “The leasing environment remains challenging, however, demand for better assets is, as expected, proving more resilient while the sector overall benefits from reduced bankruptcy/closing activity.”