Brookfield Property bids $5 bln for rest of Brookfield Office

Mon Sep 30, 2013 11:59am EDT
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(All figures in U.S. dollars, unless noted)

* Offers $19.34/shr for 49 pct of subsidiary it does not already own

* Deal would consolidate $45 bln real estate portfolio

* Brookfield Office shares up 14.3 pct

TORONTO, Sept 30 (Reuters) - Brookfield Property Partners said on Monday it will acquire the 49 percent of Brookfield Office Properties it does not already own for $5 billion in a deal that would consolidate the companies' $45 billion in real estate assets.

The $19.34-a-share cash and stock offer, which represents a 15.3 percent premium over Brookfield Office Properties' closing price on Friday, drove shares of the target up 13.5 percent to $19.03 in midday New York trading.

Both companies are subsidiaries of Toronto-based Brookfield Asset Management, which manages about $175 billion in power, property, infrastructure and private equity assets.

Brookfield Asset spun off Brookfield Property earlier this year to hold its commercial property assets, including its 51-percent stake in Brookfield Office Properties, which owns such famous properties as the former World Financial Center in New York and First Canadian Place in Toronto.

"We believe this transaction will consolidate our global office properties under one platform and substantially increase Brookfield property Partners' public float which should help accelerate our growth strategy," said Ric Clark, Chief Executive of Brookfield Property.   Continued...