Brookfield Asset Management Inc. (NYSE: BAM) and Brookfield Property Partners L.P. (NASDAQ: BPY) have reached an agreement for Brookfield to acquire all limited partnership units of BPY at a value of USD 18.17 per BPY unit. This will be completed by way of an Ontario court approved plan of arrangement. This is valued at a total consideration of USD 6.5 Billion payable to unitholders of BPY other than Brookfield and its affiliates.
The BPS Board has unanimously approved the transaction and has recommended that unitholders of BPY follow suit. After consultation with financial and legal advisors, the directors have decided that the offer is fair to the public unitholders and transactions that have been determined are deemed in the best interests of BPY. Nick Goodman, CFO of Brookfield Asset Management, stated, “We are pleased to have reached agreement with BPY’s independent directors on a transaction we believe is appealing to BPY unitholders in many aspects and allows for greater optionality in how we manage our portfolio of high-quality real estate assets. Not only can unitholders choose to receive a meaningful portion of their consideration in cash at a significant premium, but they will also have the option to remain invested in the future upside of our real estate business and alternative asset management franchise.”
This transaction is subject to approval by majority of public unitholders of BPY, including approval of other customary closing conditions. If these conditions are met the arrangement is expected to close within the third quarter of 2021.