Brookfield Asset Management to Buy All Units of Brookfield Property Partners

By Dave Sebastian

Brookfield Asset Management Inc. said it has agreed to buy all limited-partnership units of Brookfield Property Partners LP at $18.17 per unit.

The deal represents a total consideration of $6.5 billion payable to Brookfield Property Partners unitholders other than Brookfield Asset Management and its affiliates, the companies said Thursday. They said the offer reflects an increase of 10% over the non-binding proposal made by Brookfield Asset Management in January.

Brookfield Property Partners unitholders also have the option to choose 0.3979 of Brookfield Asset Management Class A limited voting share or 0.7268 of a Brookfield Property Partners preferred unit with a liquidation preference of $25 per unit, the companies said.

The companies said the maximum cash consideration would be about 50% of the total value of Brookfield Property Partners units. The consideration would also be based on the maximum amount of Brookfield Asset Management shares equal to roughly 42% of the total value of Brookfield Property Partners units and Brookfield Property Partners preferred units with a liquidation value of about 8%, at most, of the total value of the units.

The amount of Brookfield Property Partners preferred units can increase to a maximum of $1 billion in liquidation preference if public unitholders choose to receive more than $500 million in liquidation preference of Brookfield Property Partners preferred units, the companies said.

Holders of Class A stock of Brookfield Property REIT Inc. that don't exchange their shares for Brookfield Property Partners units will receive the same per-share consideration of about 50% cash, 42% Brookfield Asset Management shares and 8% Brookfield Property Partners preferred units, the companies said.

The companies expect the deal to close in the third quarter.

Write to Dave Sebastian at [e-mail]

(END) Dow Jones Newswires

04-01-21 0730ET