HAMILTON, Bermuda – Brookfield Property Partners LP (TSX:BPY.UN) says it will increase its offer to buy the rest of Brookfield Office Properties Inc. (TSX:BPO), a sweetened deal is being supported by BPO’s independent directors.
The Bermuda-based company, which already holds a 51 per cent stake in Brookfield Office Properties, has offered one unit of Brookfield Property Partners or US$20.34 in cash for each BPO share — an increase of $1 per share from its previous offer.
It says all other details from the original offer remain the same. The amount of cash offered under the bid is limited to US$1.7 billion or roughly one-third of the offer, while the number of units is capped at 174 million.
The board of directors at New-York based Brookfield Office Properties has recommended shareholders take the deal. the company owns a portfolio of office buildings in the U.S., Canada, Australia and Britain.
For shareholders of Brookfield Property Partners, the commercial real estate unit that Brookfield Asset Management Inc. (TSX:BAM.A) spun off earlier this year, the deal will mean increased trading liquidity, more exposure to office properties and reduced costs.
Brookfield is one of Canada’s largest asset managers, with investments in a wide number of publicly traded entities primarily focused on real estate, power generation and natural resources, particularly in the forestry sector.
Brookfield Office Properties Inc. has a portfolio of high-profile office towers in many major cities, including Brookfield Place in Toronto, Bankers Hall in Calgary and Bank of America Plaza in Los Angeles.