Toronto-based Brookfield Asset Management, on behalf of a real estate fund managed by Brookfield, has made an unsolicited bid to acquire Rouse Properties for $657 million or $17 in cash per share. As part of the transaction, Brookfield Property Partners would retain the Rouse shares that it currently owns.
The proposed price represents a premium of 26 percent to the closing price of Rouse shares on Jan. 15, and a 19 percent premium to the 30-day volume-weighted average trading price of Rouse shares.
“Our offer provides an attractive opportunity for Rouse shareholders to realize a significant premium to recent public market pricing,” said Brian Kingston, chief executive officer of Brookfield Property Group.
Brookfield presented its proposal to the board of directors of Rouse on Jan. 16. Rouse’s board said it has established a special committee to review the Brookfield offer and explore other alternatives for maximizing shareholder value.
Brookfield, which has $225 billion of assets under management worldwide, already owns about one-third of Rouse Properties. Rouse Properties portfolio of 35 properties with 24 million square feet, which was spun off from Chicago-based General Growth Properties in 2012.