Brookfield Asset Management announced Monday that it had made an offer to privately take its commercial real estate arm Brookfield Property Partners for a $ 5 9 billion deal

The Canadian wealth management firm is offering $ 1650 for every Brookfield Property share it does not already own

“The privatization will allow us to operate the portfolio more flexibly and realize the intrinsic value of BPY’s high quality assets,” said Nick Goodman, CFO of Brookfield Asset Management, in a statement

Brookfield Property has approximately $ 88 billion in net worth including office buildings, shopping malls, self-storage facilities and fulfillment centers Due to the impact of the Covid pandemic, the value of many of their properties has declined, including retail and office space Risky bets as vacancies rise and more people adjust to shopping and working from home

In September, Brookfield Property’s retail division shed approximately 20% of its workforce at corporate headquarters and leasing agents in that area. It became one of the largest mall owners in the country when Brookfield Property Partners became the Chicago-based mall owner GGP acquired $ 925 billion in 2018 but is now trying to return keys to a number of difficult retail items to lenders

On the Nasdaq, Brookfield Property shares are down about 20% year over year, with shares rising more than 17% early in the day of trading, while Brookfield Asset Management shares fell slightly

In a separate press release, Brookfield Property announced that its board of directors had established an independent committee to review the proposal

The $ 1650 per unit price corresponds to a premium of 149% or 14% as of Dec 31 Closing Prices of Brookfield Property shares on the Toronto Stock Exchange and Nasdaq Shareholders can choose to receive $ 1650 in cash for each Brookfield Property Unit, 040 Brookfield Class A shares, or 0 Brookfield Property’s preferred 66 according to Brookfield Asset Management preferred units with a liquidation preference of $ 25 per unit

Brookfield Asset Management, which has approximately $ 575 billion in assets under management, is proposing not to acquire any more securities from Brookfield Property and its affiliates, which are expected to be outstanding

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Brookfield Property Partners

World News – CA – Brookfield Asset Management offers to privately take Brookfield Property for $ 59 billion deal