They Said the Best Malls Would Be Prized. They Were Wrong
- Price for GGP suggests ‘asset values are at a new normal’
- Mall companies beat up as Wall Street digests Brookfield bid
Mall Mergers Accelerate With Brookfield's GGP Buyout
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Brookfield Property Partners LP’s deal to buy GGP Inc. is a reality check for property investors caught in the maelstrom of the American mall shakeout.
The roughly $15 billion deal values GGP’s assets well below Wall Street estimates and represents a disappointing resolution for shareholders after the Chicago-based real estate investment trust rejected Brookfield’s initial bid late last year. Some analysts are calling for shareholders to reject the offer, estimated at $21.90 a share, a slight premium to the stock’s closing price of $21.21 hours before the deal was announced. That estimate takes into account the mix of cash and stock Brookfield is using to pay shareholders.