Brookfield Property Partners Proposes to Acquire All Units of Brookfield Canada Office Properties Not Currently Owned
January 23 2017 - 6:50AM
All dollar references are in Canadian
dollars unless noted otherwise.
Brookfield Property Partners L.P. (NYSE:BPY) (TSX:BPY.UN) announced
today that it has made a proposal to Brookfield Canada Office
Properties (TSX:BOX.UN) (NYSE:BOXC) (“BOX”) to acquire the
approximately 16.9% equity interest in BOX that it or its
affiliates do not own (approximately 15.8 million units) for $30.10
cash per unit. The proposed price represents a premium of
14.2% to the 30-day volume-weighted average price of BOX units on
the Toronto Stock Exchange and 14.5% to the 30-day volume-weighted
average price of BOX units on the New York Stock Exchange.
The price also represents a premium of 14.8% and 14.5%,
respectively, to the closing price of BOX units on January 20,
2017.
“Our proposal provides BOX unitholders with an
attractive all-cash offer at a significant premium to recent public
market pricing,” said Brian Kingston, CEO of Brookfield Property
Group. “The acquisition of the remaining interest in BOX will allow
BPY to fully integrate its North American office operations and
further simplifies our structure.”
Unitholders holding approximately 3.65 million
units of BOX, representing approximately 23% of the unaffiliated
BOX units, including Morgan Stanley Investment Management, who
holds approximately 1.5 million units of BOX on behalf of certain
client accounts, support the proposal and have agreed, subject to
certain conditions, to vote the units of BOX they still hold at the
time an agreement is entered into in favor of the transaction.
ProcessBrookfield Property
Partners has presented its proposal to the Board of Trustees of BOX
and has asked the Board to begin a process to review the proposal
and appoint a special committee of independent trustees to
commission an independent valuation of BOX’s units. Once the
valuation is available, Brookfield Property Partners would seek to
enter into a definitive agreement with BOX with respect to the
proposed transaction for presentation to unitholders.
This press release is neither an offer to
purchase nor a solicitation of an offer to sell securities.
There is no certainty that the proposed transaction will proceed or
be consummated.
Brookfield Property
PartnersBrookfield Property Partners is one of the world’s
largest commercial real estate companies, with approximately US$66
billion in total assets. We are leading owners, operators and
investors in commercial property assets, with a diversified
portfolio that includes 149 premier office properties and 126
best-in-class retail malls around the world. We also hold interests
in multifamily, triple net lease, industrial, hospitality,
self-storage and student housing assets. Brookfield Property
Partners is listed on the New York and Toronto stock exchanges.
Further information is available at http://bpy.brookfield.com.
Important information may be disseminated exclusively via the
website; investors should consult the site to access this
information.
Brookfield Property Partners is the flagship
listed real estate company of Brookfield Asset Management, a
leading global alternative asset manager with approximately US$250
billion in assets under management.
Brookfield Property Partners Contact:
Matthew Cherry
Vice President, Investor Relations and Communications
Tel: (212) 417-7488
Email: matthew.cherry@brookfield.com
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