Brookfield Property to purchase US mall owner GGP Inc for $15.3 bn: Sources

Commercial real estate company Brookfield Property Partners LP said on Monday it would acquire the 66 percent of GGP Inc that it does not already own in a cash-and-stock deal that values GGP, one of the largest owners and operators of U. S. shopping centers, at about $15.3 billion.
The deal comes as many malls struggle to retain tenants amid the brick-and-mortar retail sector's downturn. The acquisition will strengthen Brookfield Property's negotiating power with retailers and allow it to repurpose some GGP properties.

"Having Brookfield’s expertise in offices, hotels and multi-family residential properties will allow the combined company to draw more value from the GGP mall assets," Brookfield Property Chief Executive Brian Kingston told Reuters in an interview. The agreement comes four months after a special board committee of GGP rejected a $14.8 billion cash-and-stock offer from Brookfield Property as inadequate.
Brookfield Property, which is also a major owner of US office properties, is currently GGP's largest shareholder with a 34 percent stake.

Under Brookfield Property's latest offer, which was first reported by Reuters earlier this month, GGP shareholders can elect to receive $23.50 in cash per share, or either one Brookfield unit or one newly created share that trades as a real estate investment trust (REIT). GGP shares ended trading on Monday at $21.21.