(Bloomberg) — Brookfield Property Partners LP bid about $14.8 billion to acquire the stake it doesn’t already hold in U.S. mall owner GGP Inc. as the companies seek to repurpose struggling bricks-and-mortar shopping centers.
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The firm offered $23 a share for the 66 percent of GGP it doesn’t own, Brookfield said in a statement on Monday. That’s about 21 percent more than Chicago-based GGP’s closing price on Nov. 6, the day before Bloomberg News reported Brookfield had held discussions about taking the company private. GGP said in a separate statement that its board formed a special committee to review the unsolicited proposal.
GGP shares climbed above the offer price, gaining 5.9 percent to $23.52 at 10:18 a.m. in New York.
Brookfield Property Partners is the real estate unit of Toronto-based Brookfield Asset Management Inc. Brookfield Asset has been focusing on buying and revamping shopping centers to take advantage of the land they occupy in urban areas, Chief Executive Officer Bruce Flatt said on a conference call last week. GGP last month reached an agreement with AvalonBay Communities Inc. to build apartments at a shopping center in Seattle, and CEO Sandeep Mathrani said the company “will look to explore similar projects at other locations.”