Daniel Hurwitz, lead director and chairman of the special committee formed to hash out a deal between the two companies, said, "Since receiving Brookfield's initial proposal in November, the special committee has conducted extensive due diligence, specifically evaluating the optimal consideration structure for GGP's shareholders".
In 2016, Rouse Properties Inc, another USA mall owner, rejected an offer by Brookfield Property, its largest shareholder.
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).
Amundi Pioneer Asset Management Inc. purchased a new position in shares of Brookfield Property Partners (NASDAQ:BPY) (TSE:BPY.UN) during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission.More news: Kan. water park operator promises to fight criminal charges aggressively
One of the biggest real estate mergers in years is nearing the finish line.
Shares in the new REIT will be equivalent to that of a BPY unit.
GGP's portfolio includes Water Tower Place, a 702,903-square-foot mall situated along Chicago's Magnificent Mile.
The cash portion of the consideration will be funded by a combination of approximately $4 billion from joint venture equity partners, and financings from a syndicate of lenders.More news: Red Hat Inc (RHT) Tops Q4 Earnings Estimates, Shares Soar
Moreover, the deal is subject to other customary closing conditions and it anticipated to close in third-quarter 2018. The acquisition will strengthen Brookfield Property's negotiating power with retailers and allow it to repurpose some GGP properties.
"We are pleased to have reached an agreement and are excited about combining Brookfield's access to large-scale capital and deep operating expertise across multiple real estate sectors with GGP's portfolio of irreplaceable retail assets", Brookfield Property Partners CEO Brian Kingston said in a statement. Weil, Gotshal & Manges LLP, Goodwin Procter LLP and Torys LLP served as legal counsel to Brookfield Property. GGP shares ended trading on Monday at $21.21.
Shares of Brookfield Property Partners (NASDAQ:BPY) closed the previous trading session at 18.77 down -0.62 3.20% with 19.479999542236328 shares trading hands.More news: Remember, services like Facebook are free because you're the product being sold