Brookfield buyout approved

Brookfield Asset Management is taking its mall giant Brookfield Property Partners fully under its control at the tune of 6.5 billion dollars. The initial deal proposed in January was for 5.9 billion dollars. The current deal is going through Ontario Court and is expected to close in Q3 of this fiscal year. Investors hold stock in the property group can elect to take 18 dollars and 17 cents in cash per unit, Brookfield stock, or a combination of the two. The news was reported by Bloomberg.

Brookfield Asset Management negotiated the deal with the independent directors of the property business, and the deal was seen as appealing to investors. Brookfield Place is considered a cornerstone of Manhattan retail, and was one of the largest retail developments seen in Manhattan in years.

Despite Brookfield place’s well known tenants, including J. Crew, Michael Kors, and Gucci, the mall was hit by the COVID-19 pandemic, like virtually all brick-and-mortar retail spaces were during lockdown. This sent the retail real estate market into a tizzy that it is working on recovering from.