Real estate giant Brookfield Property Partners has launched an offer for units in Brookfield Office Properties that it does not already own, to create one of the largest global commercial real estate landlords.
Brookfield was planning a tender offer of the New York-based landlord's shares for stock or cash at a value of $US19.34 each, which was a 15 per cent premium to the closing price, and valued the shares about $US5 billion.
In Australia, Brookfield Office Property owns and has interests in assets including the Darling Park complex, One Shelley Street, and the Ernst & Young Centre at 680 George, among others, in Sydney, and the Southern Cross East and West Towers and Bourke Place in Melbourne.
Property analysts said the deal, if approved, would give the Australian operations significant buying power in the country's tightly held commercial real estate market, particularly at the premium and A-grade end of the ratings range.
Brookfield Property was spun out of Toronto-based Brookfield Asset Management and owns 51 per cent of Brookfield Office Property, which owns, develops and manages 109 office properties in the US, Canada, Australia and Britain, making it the global leader in the ownership and management of office assets.