Skip to content
Subscriber Only

Brookfield’s $15 Billion Deal for GGP Is Bad News for the American Mall

  • Offer for mall owner’s shares ‘wholly inadequate,’ BTIG says
  • Analysts recommend shareholders vote against Brookfield bid
Video player cover image

Mall Mergers Accelerate With Brookfield's GGP Buyout

Updated on

Brookfield Property Partners LP’s deal to take over retail landlord GGP Inc. is “wholly inadequate,” “a negative for the sector” and “neither exciting for GGP shareholders nor a good read-through for mall asset values.” In fact, “investors should vote against the transaction as it does not offer sufficient value.”

Those are the initial conclusions of Wall Street analysts examining Brookfield’s agreement to buy the 66 percent of GGP that it doesn’t already own. Shareholders of GGP, the second-largest U.S. mall owner, will receive $23.50 in cash, one Brookfield unit or a share of a new real estate investment trust for each share they own, according to a statement Monday. The cash consideration is $9.25 billion with 61 percent of the deal in cash and 39 percent in equity, the companies said, and the total value of the acquisition is almost $15 billion, according to data compiled by Bloomberg.