Brookfield upheaval spins off flagship property trust
The group, which owns Multiplex in Australia, will place a majority of its commercial assets into the trust as part of its consolidation of the business units.
In a statement at the weekend, it says each shareholder will receive one BPY unit for every 17.42 shares of Brookfield. The dividend is estimated to be valued about $US1.45 per Brookfield Class A or B share, or about $900 million in the aggregate.
Immediately following the distribution, BPY will effectively be owned about 7.5 per cent by the shareholders of Brookfield and about 92.5 per cent by Brookfield.
The group said the new trust would be Brookfield's flagship commercial property company and the primary entity through which Brookfield would carry on its commercial property operations on a global basis.
BPY's goal is to be the leading global investor in best in class commercial property assets.
"BPY will own substantially all of Brookfield's commercial property operations, including its office, retail, multi-family and industrial assets," the company said.
"BPY's portfolio will include interests in over 300 office and retail properties. BPY will have interests in about 12,200 multi-family units, 7 million square feet of industrial space and an 18 million square foot office development pipeline."
Frequently Asked Questions about this Article…
Brookfield Asset Management is creating a new US$900 million property trust (BPY) by distributing a special dividend to shareholders. The trust will hold a majority of Brookfield's commercial property assets as part of a consolidation of its business units.
The article says the property trust will be created in April through the distribution of a special dividend to Brookfield shareholders.
Each Brookfield shareholder will receive one BPY unit for every 17.42 Brookfield Class A or B shares they own. The distribution is estimated to be worth about US$1.45 per Brookfield share, or roughly US$900 million in total.
Immediately after the distribution, BPY is expected to be owned about 7.5% by Brookfield shareholders and about 92.5% by Brookfield itself.
BPY will own substantially all of Brookfield's commercial property operations, including office, retail, multi‑family and industrial assets.
BPY’s portfolio will include interests in over 300 office and retail properties, about 12,200 multi‑family units, 7 million square feet of industrial space, and an 18 million square foot office development pipeline.
Brookfield says BPY will be its flagship commercial property company and the primary entity for global commercial property operations, aiming to be a leading global investor in best‑in‑class commercial property assets.
Yes. The article notes that Brookfield owns Multiplex in Australia, indicating the group’s commercial property operations include assets and businesses with an Australian footprint.
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