Brookfield to take real estate arm private in $5.9bn deal

Brookfield Asset Management has made an offer to take its real estate arm Brookfield Property Partners private in a $5.9bn deal.

The Canadian investment group has offered $16.50 in cash for every share in the property company it does not own, indicating a near 15 per cent premium on its trading price as of December 31.

Brookfield’s decision to delist its property business comes as US real estate companies have taken a huge hit during the coronavirus pandemic, with lockdowns and home working dramatically reducing occupancy and utilisation rates.

Brookfield Property Partners’ share price dropped more than 50 per cent in April and has only recently started to recover as restrictions on businesses such as malls and restaurants were partially lifted.

“The privatisation will allow us to have greater flexibility in operating the portfolio,” said Nick Goodman, chief financial officer of Brookfield Asset Management.

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