Brookfield Asset Management Inc makes US$657M offer for U.S. shopping-mall owner Rouse Properties Inc

Brookfield Asset Management Inc., Canada’s largest alternative asset manager, made an unsolicited offer to acquire U.S. shopping-mall owner Rouse Properties Inc. for around US$657 million.

Brookfield, which already owns about a third of Rouse, said hello would pay US$17 a share for the remainder within an all-cash transaction, according to a statement Tuesday. The offer is 26 percent a lot more than Rouse’s closing price on Friday. The real estate investment trust’s shares jumped 30 percent, the most on record, to US$17.54 at 9:49 a.m. in Ny.

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Rouse was spun off in 2012 removed from mall owner General Growth Properties Inc., after General Growth emerged from bankruptcy with financing from an investor group led by Brookfield. The Rouse spinoff contained 30 retail properties in smaller cities and second-tier properties in larger markets. Shares of recent York-based Rouse had fallen about 32 per cent within the Twelve months through Friday.

“Our offer offers an attractive chance of Rouse shareholders to realize a substantial premium to recent public- market pricing,” said Brian Kingston, ceo of Brookfield’s publicly traded real estate arm, Brookfield Property Partners LP.

As part of the purchase, Brookfield Property Partners would support the Rouse shares that it currently owns, according to the statement. The transaction values Rouse at approximately US$986 million.

Rouse, in the own statement, said it received Brookfield’s unsolicited proposal on Saturday and established a unique committee to examine it and explore alternatives.

Brookfield continues to be bolstering its property holdings with purchases such as the US$2.5 billion acquisition this past year of U.S. apartment landlord Associated Estates Realty Corp.

Bloomberg News