(All figures in U.S. dollars, unless noted)
* Offers $19.34/shr for 49 pct of subsidiary it does not
* Deal would consolidate $45 bln real estate portfolio
* Brookfield Office shares up 14.3 pct
TORONTO, Sept 30 Brookfield Property Partners
said on Monday it will acquire the 49 percent of
Brookfield Office Properties it does not already own
for $5 billion in a deal that would consolidate the companies'
$45 billion in real estate assets.
The $19.34-a-share cash and stock offer, which represents a
15.3 percent premium over Brookfield Office Properties'
closing price on Friday, drove shares of the target up 13.5
percent to $19.03 in midday New York trading.
Both companies are subsidiaries of Toronto-based Brookfield
Asset Management, which manages about $175 billion in
power, property, infrastructure and private equity assets.
Brookfield Asset spun off Brookfield Property earlier this
year to hold its commercial property assets, including its
51-percent stake in Brookfield Office Properties, which owns
such famous properties as the former World Financial Center in
New York and First Canadian Place in Toronto.
"We believe this transaction will consolidate our global
office properties under one platform and substantially increase
Brookfield property Partners' public float which should help
accelerate our growth strategy," said Ric Clark, Chief Executive
of Brookfield Property.
Shareholders can elect to receive either one limited
partnership unit of Brookfield Property Partners or $19.34 in
cash, with the total cash component of the deal not to exceed
$1.7 billion, Brookfield Property said.
Brookfield Property units were up 8 Canadian cents at
C$20.08 on the Toronto Stock Exchange. The company said it will
finance the cash portion of the offer through an acquisition
facility with a syndicate of banks.
The combined entity will hold more than 330 million square
feet of office, retail, industrial and residential assets across
four continents, the companies said.
(Reporting by Cameron French, editing by G Crosse)