Archive | Brookfield

World property Th2Jul15 – Brookfield bids for Australian ports specialist

Brookfield proposes Asciano takeover

Brookfield Infrastructure Partners LP has entered discussions with Australian port & logistics operator Asciano Ltd for a takeover priced at $A8.83 billion.

The figure on the table was $A9.05/Asciano share, in a mix of cash & scrip, but both parties said it was indicative, non-binding & conditional. Brookfield approached Asciano last Friday and Asciano disclosed the discussions on Tuesday.

Asciano said its board considered it was in the interests of its shareholders to engage further with Brookfield on a confidential basis to progress the proposal, adding that discussions were at an early stage and the offer still required approval from Brookfield boards. It said there was no certainty the discussions would result in an offer, or what the terms of that offer might be.

Canadian property giant Brookfield Asset Management Inc spun the international infrastructure business off in 2008 but retained management of it. Brookfield Infrastructure Partners is listed in New York & Toronto, like other Brookfield entities. Across all entities, Brookfield manages $US200 billion of assets.

It controls Brookfield Office Properties Inc, which owns, manages & develops property in North America & Australia; Brookfield Canada Office Properties, a real estate investment trust; and 2 of the biggest retail property owners in the US, General Growth Properties Inc & Rouse Properties Inc.

It also owns Australian construction company Brookfield Multiplex, which has expanded into Canada, Europe, India & the Middle East.

Asciano decribes itself as a supply chain manager with a transport infrastructure portfolio. It was formed through the merger of port stevedoring & container port operator Patrick and logistics business Toll, and operates in Australia & New Zealand.

Asciano’s share price rose 16.8% ($A1.12) yesterday to close at $A7.77.

Links: Brookfield Infrastructure Partners
Brookfield Asset Management
Asciano

Attribution: Asciano, Brookfield

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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World property Sun14Dec14 – Leighton offloads to Chinese, German housing, Sydney redevelopment, 270ha Melbourne subdivision, Valad trades, transit-linked mall, New Scotland Yard

Leighton sells John Holland to Chinese company
Sovereign fund joins German housing joint venture
Wynyard Station redevelopment advances
270ha masterplanned subdivision for Melbourne fringe
Valad sells Berlin complex
Construction to resume on Copenhagen transit-lined mall
Abu Dhabi investor to replace New Scotland Yard with apartments

Leighton sells John Holland to Chinese company

Australian construction group Leighton Holdings Ltd said on Friday it had entered into a binding agreement to sell its John Holland Pty Ltd subsidiary to China Communications Construction Co Ltd for an enterprise valuation of $A1.15 billion, subject to certain adjustments.

China Communications Construction’s subsidiary buying the ASX-listed company is CCCC International Holding Ltd (CCCI). The parent company is the fourth largest construction company in the world by revenue, is listed on the Hong Kong & Shanghai stock exchanges and has a market capitalisation of $NZ25 billion.

China Communications Construction has also been on a World Bank procurement blacklist for 6 years, and is scheduled to remain on it until January 2017, for fraud & corruption by a company which is now a subsidiary.

Leighton is 69.62% owned by German construction company Hochtief AG. Hochtief chief executive Marcelino Fernández Verdes, who is also Leighton’s executive chairman & chief executive, said the sale conformed to the strategy outlined in June to strengthen Leighton’s balance sheet. Notably, though, he reflected this in Australian terms, although John Holland, like Leighton, is a very international company, including a New Zealand presence: “Following a comprehensive & extensive global sale process, we have achieved a value for John Holland which reflects its position as one of the country’s leading engineering & construction companies.

“The divestment of John Holland supports our focus on further reducing gearing and strengthening our balance sheet so we can be sustainably competitive. Proceeds will also be used to finance future growth, particularly in public-private partnerships.”

For Leighton, Mr Fernández Verdes said indicative impacts were a reduction in gearing of about 10 percentage points, an $A3.7 billion reduction in annual revenue and $A5.4 billion of work in hand, and about 4100 employees transferring with the John Holland business.

Mr Fernández Verdes said: “The existing John Holland management will work closely with CCCI to ensure a smooth transition so the business continues to safely & efficiently provide services to its clients.”

The sale is subject to customary approvals including by Australia’s Foreign Investment Review Board.

The Leighton Group is a major international contractor and the world’s largest contract miner. The group provides development, engineering, construction, contract mining and operation & maintenance services to the infrastructure, resources & property markets.

John Holland provides engineering, contracting & services to the infrastructure, energy & resources and transport services sectors in Australia, New Zealand, South-east Asia & the Middle East.

The World Bank recently clarified its sanctions regime to ensure that successor organisations – through purchase or reorganisation – will be subject to the same sanctions applied to the original entity, making CCCC ineligible to engage in any road & bridge projects financed by the World Bank Group.

CCCC is the designated successor entity to China Road & Bridge Corp, which was debarred by the World Bank for 8 years, beginning January 2009, for fraudulent practices on the Philippines national roads improvement & management project.

Links: Leighton
World Bank blacklist
The Bribery Act, CCCC debarment
HiPipo, blacklist allegation dismissed

Sovereign fund joins German housing joint venture

A niche property market in the northern hemisphere, portfolios of German housing, continues to attract investors, often through international partnerships.

A €300 million joint venture established this week is between a Berlin-based manager, Kauri CAB Management GmbH, an investment & asset management specialist in northern European property with bases in London & Stockholm, Apeiron Capital Ltd, and an unnamed sovereign investment fund.

They’ve started the joint venture with a €130 million portfolio of 1675 residential & 105 commercial units within 61 residential buildings, 70% in Berlin and the rest in Magdeburg.

The seller of the portfolio is another German residential investment specialist, ZBI AG.

Kauri sold a portfolio of 25 Berlin residential buildings €78.6 million in July, after holding it for 3 years with Pramerica Real Estate Investors, the $US1.1 trillion real estate investment & advisory business of Prudential Financial Inc of New York.

Links: Kauri
Apeiron

Wynyard Station redevelopment advances

Sydney media said this week Brookfield Property Partners LP’s $A1 billion Wynyard Place development (marked in red in aerial picture above) had moved to the final stage of the New South Wales Government’s unsolicited proposal process.

Brookfield proposed combining its One Carrington St development with improvements to the public access areas for Wynyard Station, a major underground commuter stop in the heart of the Sydney cbd. Brookfield wants to create a new 68,000m² commercial & retail development over & including the eastern access ways to the station concourse from George St through to Carrington St, which was given concept plan approval in 2012.

It would involve demolishing Thakral House on George St and the Menzies Hotel on Carrington St, and refitting the heritage-listed Shell House from a hotel to office space. The 99-year land leases would be extended by 21 years, running to 2110.

Wynyard Station’s old low-clearance tunnel entry would be replaced by an open shared thoroughfare with natural light and the provision of new public domain spaces.

Links: Brookfield Property Partners
NSW Government, unsolicited proposals
$100 million Wynyard Station upgrade to begin
Wynyard Station upgrade, Transport for NSW

270ha masterplanned subdivision for Melbourne fringe

Villa Word Ltd & CVC Ltd have bought 270ha at Donnybrook in Melbourne in 2 transactions for a masterplanned residential subdivision. Total purchase price was $A22.775 million ($A84,352/ha).

Villa World chief executive & managing director Craig Treasure said on Thursday the 2 adjoining sites were inside Melbourne’s urban growth boundary, 46km out from the cbd in the northern growth corridor. That’s about the same distance from the cbd as Puhoi in the north and the Bombay Hills in the south are from the Auckland cbd.

Mr Treasure expected a planning process taking 2-3 years, potentially yielding more than 2000 lots. He said the project should start contributing to revenue in the 2019 financial year.

Links: Villa World

Valad sells Berlin complex

Thiemann Quartier, Berlin.

Thiemann Quartier, Berlin.

Real estate investment manager Valad Europe has sold Thiemann Quartier in Berlin Neukölln, Germany, to Concarus Real Estate Invest GmbH for €46.75 million, reflecting a net initial yield of 7.76%. The sale was completed on behalf of Valad’s V+ Germany mandate.

Thiemann Quartier’s 15 buildings contain 53,000m² of warehouse, office, leisure & retail space.

Valad Europe’s head of German business, Andreas Hardt, said this week the company had extended the leases of the 2 anchor tenants and agreed a long-term lease with a new tenant, getting the complex almost fully let, mostly on long-term leases of up to 10 years, before marketing it.

Valad Europe, a subsidiary of Valad Property Group of Australia, manages €4.9 billion of real estate assets & investment capacity and €1 billion of development projects for 20 funds & mandates. Concarus is owned by 2 entrepreneurial German families.

Link: Valad Europe

Construction to resume on Copenhagen transit-lined mall

Vanløse mall, Copenhagen.

Vanløse mall, Copenhagen.

A shopping centre directly linked to a railway station and also on a main bus route, in an affluent suburb 5km from the centre of Copenhagen, will be completed in the second half of 2016 after a European investment fund bought the half-finished structure.

Holberg Fenger Invest A/S stopped construction 2 years ago. It had planned a total 36,000m², including 18,000m² of shops, 3000m² for restaurants & cafes and a 9-storey office tower, with 350 parking spaces for cars, 400 for bikes.

EPISO3 (European Property Investors Special Opportunities 3), a fund advised by real estate investment manager Tristan Capital Partners & joint-venture partner Solstra Capital Partners, plans to spend €90 million completing the Galleria development in Vanløse, Copenhagen.

Links: Tristan Capital Partners
Vanløse

Abu Dhabi investor to replace New Scotland Yard with apartments

The famous New Scotland Yard police headquarters in London has been bought by a multi-billion dollar alternative investment company, Abu Dhabi Financial Group, for £370 million – £120 million more than the guide price and 3 times what was originally paid for the site freehold in 2008.

The building will be demolished to make way for apartments. Once redeveloped & sold, the Victoria St site is projected to yield up £100 million in stamp duty.

The London Mayor’s Office for Policing & Crime (MOPC) replaced the Metropolitan Police Authority in 2012, and mayor Boris Johnson has earmarked proceeds from this sale to be invested in cutting-edge technology and a leaner, more modern police property portfolio.

The building also houses many artefacts & policing memorabilia dating back to the formation of the Metropolitan Police in 1829, none of which are on public display. Some of the sale proceeds will be used to relocate this collection to a dedicated museum site.

The police headquarters is shifting to the refurbished Curtis Green building on the Victoria Embankment, less than 1km away.

Link: London Councils

Regular leads: Europe Real Estate, Mingtiandi, Planetizen, World Property Channel

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World property Sun9Nov14 – Canary Wharf bid, Brookfield results, DTZ sale

Canary Wharf owner rejects Qatar-Brookfield offer in advance
Brookfield entities report mixed returns
DTZ sale completed

Canary Wharf owner rejects Qatar-Brookfield offer in advance

The Qatar Investment Authority & Brookfield Property Partners LP haven’t formally bid yet for the majority owner of London’s Canary Wharf but, in case they do, Songbird Estates plc has rejected £2.95/share in cash as well short of worth considering. At that price, Songbird would be worth £2.184 billion.

Songbird owns 69.3% of Canary Wharf Group plc. As at 31 December 2013, Canary Wharf Group’s investment property portfolio, including land, was worth £5.515 billion. Canary Wharf has 35 completed buildings containing 1.5 million m² of office space on 39ha of formerly derelict dockland.

The Qatari authority owns 28.6% of Songbird, buying heavily after the global financial crisis began. The authority & Canary Wharf are also partners – Canary Wharf Group and the Qatar Investment Authority-owned Qatari Diar Real Estate Investment Co entered a joint venture in January 2013 to redevelop the Shell Centre site on London’s South Bank.

Songbird’s share price jumped on Friday to close at £3.10/share after getting as low as £2.30 just weeks ago.

Songbird independent chairman David Pritchard said in releases on Thursday & Friday the Qatari authority & Brookfield had made a preliminary approach “expressing an interest in formulating an offer for the company”.

But, he said: “This proposal significantly undervalues Songbird and does not reflect the inherent value of the business & its underlying assets. The group has an exceptional management team with a clear vision to deliver additional shareholder value, including from our 11 million ft² (1 million m²) development pipeline, the largest in London.”

Earlier story:
6 January 2013: Canary Wharf & Qatari Diar unveil South Bank development

Links: The Guardian, 6 November 2014, Qatari fund bids for Canary Wharf owner Songbird
Canary Wharf
Songbird

Brookfield entities report mixed returns

While the rumours of a Qatari-Brookfield bid for Songbird were confirmed on Thursday, one international Brookfield entity was releasing an upbeat quarterly result while its alternative asset manager had a mixed return.

Brookfield Asset Management Inc, a global alternative asset manager (which includes property along with a number of other asset classes), has $US200 billion of assets under management. It reported lower third-quarter earnings but higher earnings for 9 months – consolidated net income down from $US1.5 billion to $US1.1 billion for the quarter, up from $US3 billion to $US3.5 billion for 9 months. Per share, both the 3-month & 9-month figures fell – from $US1.85 to US83c for the quarter, from $US3.56 to $US2.39 for 9 months.

In Canada & the US, Brookfield Asset Management put a proposal on 23 October to buy the 30% of Brookfield Residential Properties Inc it doesn’t own (about 36.8 million shares) for $US23.00 cash/share (a total $US846 million) – 20% premium to the previous day’s close & 30-day volume-weighted average price.

Brookfield Property Partners LP (spun off from Brookfield Asset Management in April 2013, but still managed by it) reported strong third-quarter earnings on Thursday – funds from operations up from $US132 million to $US199 million for the quarter and from $US425 million to $US568 for 9 months, net attributable income up from $US235 million to $US978 million for the quarter, $US805 million to $US2.24 billion for 9 months, and up from US50c to $US1.37/unit for the quarter, $US1.73 to $US3.43/unit for 9 months.

The partnership acquired more of Brookfield Office Properties Inc & General Growth Properties Inc during the year, and recorded a $US178 million gain on its Canary Wharf investment. Nothing was mentioned in the results announcement about the pending offer for Canary Wharf’s majority shareholder, Songbird Estate plc.

Among its sector activities, Brookfield’s multi-family division boosted operational earnings on stable occupancy and, in October, bought a $US1 billion, 4000-unit Manhattan portfolio with a $US330 million equity investment, of which the partnership’s share was $US110 million.

“Occupancy of our multi-family operations at quarter-end was 94.1%, consistent with the prior year. In-place rents increased about 10% in the first 9 months of 2014 due to strong market conditions & rent step-ups on newly renovated units. We continued our renovation programme and remain on target to refurbish a total of 2000 units in 2014.”

In Sydney, Brookfield Multiplex has been appointed to build the $A800 million 235m Greenland Centre residential tower, which will be the tallest apartment tower in the cbd. The tower, on a 3969m² site at the corner of Bathurst & Pitt Sts, will have 66 levels, 470 apartments & 6 penthouses. The adjoining heritage building will be converted into a boutique 180-room 5-star hotel. Chinese Government development company Greenland Group Co Ltd, of Shanghai, and Brookfield Asset Management Inc bought the site in March last year in a joint venture.

Links:
Brookfield Asset Management
Greenland Centre, Sydney
Brookfield Property Partners

DTZ sale completed

Sydney-based UGL Ltd has completed the $A1.215 billion sale of international property consultancy DTZ, 3 years after buying the business from its administrators for $A120 million. The enterprise being sold this time includes some valuable add-ons.

The buyer is an international private equity consortium led by TPG Capital Management LP, one of the former Texas Pacific Group arms. The other partners are PAG Asia Capital and Ontario Teachers’ Pension Plan.

London-listed DTZ Holdings plc was on its way out the back door at the end of 2011 after an admission of debt made its shares near-worthless and it fell into administration. UGL lifted DTZ back up to become the dominant part of its business, then decided to focus once more on its traditional engineering services business.

UGL said on Thursday it would distribute $A3/share (a total $A50 million) from the net $A1 billion of DTZ sale proceeds, expected to be paid on 27 November.

TPG said former CBRE Group chief executive Brett White would become fulltime executive chairman of DTZ in March and global chief executive Tod Lickerman would continue in that role.

Mr Lickerman said: “DTZ now has the independent governance, strong capital base & speed-to-market of a private company, which will allow us to grow & serve our clients’ ever-changing needs.”

The new-look DTZ has already expanded in the US. In September, an affiliate of DTZ Investment Holdings (backed by the TPG & PAG consortium) entered into an agreement to acquire Cassidy Turley, with plans to combine it with the DTZ business during 2015.

Link: DTZ-UGL

Earlier story:
17 June 2014: DTZ sold to international consortium

Attribution:

Regular leads: Europe Real Estate, Mingtiandi, Planetizen, World Property Channel

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Brookfield bumps share issue up to $C275 million

Published 10 January 2010

Brookfield Asset Management Inc, of Toronto, announced a $C150 million issue of preferred shares on 5 January, with $C50 million of oversubscription available – then later the same day raised the issue to $C275 million.

 

Brookfield Asset Management owns Brookfield Multiplex Ltd, of Sydney, and that subsidiary’s New Zealand businesses.

 

The series 24 preferred shares are priced at $C25 and will pay a cumulative quarterly fixed dividend yielding 5.4%/year for the initial period ending 30 June 2016. After that, the dividend rate will be reset every 5 years at a rate equal to the 5-year Canadian Government bond yield plus 2.3%.

 

The number of shares in the offer has been increased from 6 million, plus 2 million available to underwriters, to 11 million with no provision for oversubscription. The offering is expected to close on 14 January.

 

Brookfield Asset Management has over $US90 billion of assets under management. It’s focused on property, power & infrastructure assets. The company will release its year-end results, and discuss current business initiatives, on Friday 19 February.

 

Link: Brookfield Asset Management

 

Want to comment? Go to the forum.

                                                                                              

Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.

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NY portfolio owner Brookfield lifts net income 8.2%

Published 29 April 2007


Brookfield Properties Corp, listed in New York & Toronto, increased net income by 8.2% to $US53 million (US20c/share) and funds from operations by 25.2% to $US129 million (US48c/share) for the March quarter.


Brookfield leased 1.6 million ft² at an average $US22/ft² (149,000m² at $NZ320/m²), which represented a 29% improvement in rent spread on a ft² basis over the 1.8 million ft² of leases which expired at an average of $17/ft² ($NZ247/m²). The company’s portfolio-wide occupancy finished the quarter at 95%.


Commercial property net operating was $US317 million, up from $US170 million for the first quarter of 2006, primarily due to the contribution from the US Office Fund, which was fully invested in the fourth quarter of 2006.


The company refinanced One World Financial Centre, New York, with a $US310 million, non-recourse 10-year interest-only financing at a rate of 5.83%, repaying $US300 million full-recourse floating-rate financing.


One thing it hasn’t done – and didn’t mention – was to follow through on its February bid to take over Australian property company Multiplex Ltd – but not the other half of the group, the Multiplex Property Trust. Multiplex Ltd consists of Multiplex’s property development, construction, property funds management & facilities management businesses.


Earlier stories:


7 February 2007: Brookfield starts bid for Multiplex


7 February 2007: Simon vies with Brookfield for troubled Mills


23 October 2005: Brookfield completes O&Y takeover


 


Want to comment? Click on The new BD Central Forum or email bobdey@propbd.co.nz.


 

Attribution: Company release, story written by Bob Dey for this website.

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Brookfield completes O&Y takeover

Published 22 October 2005


The Brookfield Consortium, led by New York & Toronto-focused Brookfield Properties Corp & its Canadian subsidiary, BPO Properties Ltd, have completed their $C2 billion takeover of the Toronto-based O&Y Properties.



A previous attempt to buy O&Y foundered when the O&Y Reit minorities defeated the sale by the reit & its 42% owner, O&Y Properties Corp.


Philip Reichmann, chief executive of both O&Y entities, put the portfolio on the market in February and got his first sale agreement with the Brookfield consortium in June.


Brookfield has a portfolio of 47 commercial properties and development sites totalling 4.3 million m², including landmark properties such as the World Financial Centre in New York and BCE Place in Toronto. BPO Properties Ltd, 89% owned by Brookfield Properties, has interests in 18 commercial properties and development sites totalling 1.3 million m², including landmark properties such as the Exchange Tower, home of  the Toronto Stock Exchange, and Bankers Hall in Calgary.


O&Y Properties Corp, successor to the Reichmann brothers’ Olympia & York, which first developed Canary Wharf in London, owns the 250,000m² First Canadian Place in Toronto. The O&Y reit has 23 high-class properties of its own.


Earlier stories:


11 October 2005: Revised deal makes O&Y sale likely


9 July 2005: Reit minorities defeat $C2 billion O&Y sale, but part of deal can still proceed


17 February 2005: Reichmann puts Canadian property giant O&Y on the block


 


If you want to comment on this story, write to the BD Central Discussion forum or send an email to bobdey@propbd.co.nz.

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Revised deal makes O&Y sale likely

Published: 11 October 2005


A new arrangement for the sale of $2 billion Canadian property company O&Y Properties Corp has been approved by shareholders, replacing a deal which fell over in July.



Brookfield Properties Corp & its Canadian-based subsidiary, BPO Properties Ltd, said their bidding consortium would pay $C12.72/share for the company, but the deal still required the consortium to get more than 50% of the O&Y Reit units not owned by O&Y Properties Corp.


O&Y Properties owns 42% of the reit. The reit owners defeated the July sale when they rejected $C15.50/unit. This time they’ve been offered $C16.25/unit and institutional unitholders representing 36% of the non-O&Y Properties units have agreed to support the proposal.


Earlier stories:


9 July 2005: Reit minorities defeat $C2 billion O&Y sale, but part of deal can still proceed


6 June 2005: O&Y chief gets his $C2 billion wish17 February 2005: Reichmann puts Canadian property giant O&Y on the block


 


If you want to comment on this story, write to the BD Central Discussion forum or send an email to bobdey@propbd.co.nz.

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Reit minorities defeat $C2 billion O&Y sale, but part of deal can still proceed

Published: 9 July 2005


Minority unitholders in the O&Y reit have defeated the sale of a $C2 billion-plus portfolio built up by O&Y’s Reichmann family, but the way is still open for part of the deal to proceed.


The $C15.50/unit price for the reit was only C20c above the price the units were trading at the day before the vote. The sale proposal was also complicated by tax issues & the proposed future ownership structure.


O&Y Properties Corp, successor to the Reichmann brothers’ Olympia & York, which first developed Canary Wharf in London, owns the 250,000m©÷ First Canadian Place in Toronto and 42% of the O&Y real estate investment trust, which has 23 high-class properties of its own.


Philip Reichmann, chief executive of both O&Y entities, put the portfolio on the market in February and got a sale agreement on 1 June with a consortium headed by Brookfield Properties Corp & its Canadian subsidiary, BPO Properties Ltd.


In votes on Thursday, O&Y Properties Corp shareholders approved the sale (99.9% in favour of an offer of $C13/share) but the reit investors didn¢®’t. In that vote, more than 66¨ø% of total votes were in favour, but not the required majority of minorities.


The Brookfield consortium can still waive the condition involving reorganisation of the reit and proceed to buy O&Y Properties Corp. It has until Thursday 28 July, subject to certain extensions, to make that decision.


Brookfield Properties president & chief executive Ric Clark said the Brookfield consortium won the bidding war which drew interest from more than 50 groups.


Brookfield has a portfolio of 46 commercial properties and development sites totalling 4.3 million m©÷, including landmark properties such as the World Financial Centre in New York and BCE Place in Toronto.BPO Properties Ltd, 89% owned by Brookfield Properties, has interests in 17 commercial properties and development sites totalling 1.3 million m©÷, including landmark properties such as the Exchange Tower, home of  the Toronto Stock Exchange, and Bankers Hall in Calgary.


Websites: O&Y Properties


O&Y Reit


Brookfield Properties


BPO Properties


 


Earlier stories:


6 June 2005: O&Y chief gets his $C2 billion wish


17 February 2005: Reichmann puts Canadian property giant O&Y on the block


If you want to comment on this story, write to the BD Central Discussion forum or send an email to bobdey@propbd.co.nz.

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O&Y chief gets his $C2 billion wish

Published: 6 June 2005


O&Y Properties Corp chief executive Philip Reichmann said when the company & the reit it controls were put on the market in February he wanted at least $C2 billion for them, and that’s roughly what he’s got.



The sale of the company & reit to a consortium headed by Brookfield Properties Corp & its Canadia subsidiary, BPO Properties Ltd, was agreed on 1 June. Investors in the 2 O&Y entities will vote in the first half of July to approve the sale. Institutional investors in the deal include the Canada Pension Plan Investment Board.


Mr Reichmann, 47, chief executive of both O&Y entities, said they’d assembled “a stellar portfolio of office properties across Canada” in 8 years but stock prices substantially undervalued the portfolios & operating platform. O&Y Properties is a successor to the Reichmann brothers’ Olympia & York, which developed Canary Wharf in London.


O&Y Properties is a Canadian commercial real estate company. Its 2 principal assets are First Canadian Place in Toronto & 42% of O&Y Reit. The reit owns 24 office properties and O&Y Enterprise, which provides 3rd-party management & leasing services for about 3.25 million m² of properties across Canada. The combined portfolio of the 2 companies consists of 25 high-quality office properties containing 900,000m² in 6 Canadian markets.


Brookfield Properties has 46 commercial properties & development sites containing 4.3 million m² in its portfolio. They include the World Financial Centre, beside the devastated World Trade Centre in New York, and BCE Place in Toronto.


BPO Properties, 89% owned by Brookfield, has interests in 17 commercial properties & development sites.


Websites: O&Y Properties


O&Y Reit


Brookfield Properties


BPO Properties


 


Earlier story:


17 February 2005: Reichmann puts Canadian property giant O&Y on the block


 


If you want to comment on this story, write to the BD Central Discussion forum or send an email to bobdey@propbd.co.nz.

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Reichmann puts Canadian property giant O&Y on the block

Published: 17 February 2005


The 2 listed Canadian property entities set up by the Reichmann family, O&Y Properties Corp and O&Y Reit, went on the market yesterday with a $C2 billion-plus enterprise value on them.



The 2 entities’ websites ran a joint statement in which they said stock prices substantially undervalued their property portfolio & operating platform.


O&Y Properties, successor to the Reichmann brothers’ Olympia & York, which first developed Canary Wharf in London, owns the 250,000m² First Canadian Place in Toronto and 42% of the real estate investment trust, which has 23 high-class properties of its own.


The reit is also a leading real estate services provider in Canada, with 750 staff specialising in property management & leasing.


The 2 entities have gone out seeking proposals and expect it will be at least the 3rd quarter of this year before a transaction is completed.


O&Y Properties chairman Stanley Hartt said: “In light of recent valuations in real estate markets, we believe that the public market trading price of the shares of O&Y Properties is substantially below the underlying value of the property portfolio & operating platform of the 2 entities. A sale at this time is the best way to unlock the significant shareholder value that has been created.”


Philip Reichmann, 47, chief executive of both entities, said they’d assembled “a stellar portfolio of office properties across Canada” in the past 8 years.


Buyers will have to take out the reit minorities on an equivalent-price basis as well.


Mr Reichmann told the Toronto Globe & Mail the idea of selling began to develop last year after O&Y lost badly to German investors in a bidding war for a Toronto office portfolio.


Websites: O&Y Properties


O&Y Reit


Globe & Mail story


 

If you want to comment on this story, write to the BD Central Discussion forum or send an email to bobdey@propbd.co.nz.

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