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Deals & Dealmakers

Brookfield completes $2.8B acquisition of mall REIT Rouse Properties

A Brookfield Asset Management unit has completed its acquisition of New York-based mall REIT Rouse Properties.

Photo by Rene Schwietske/ Flickr
Photo by Rene Schwietske/ Flickr

The deal, which provides Rouse with a valuation of $1.06 billion, has been in motion since Brookfield made an unsolicited cash offer last January. The earlier offer valued Rouse at $657 million.

Under the terms of the deal, which is structured as a merger agreement, Brookfield unit BSREP II Retail Pooling LLC will purchase 66.5 percent of Rouse stocks at $18.25 per share. Another Brookfield unit, Brookfield Property Partners, already owns 33.5 percent of Rouse shares. The deal, including debt, is valued at $2.8 billion. Rouse common stocks will be delisted from the New York Stock Exchange as a result of the transaction.

Rouse shareholders approved the merger last month, with entities holding 88.32 percent of the company’s outstanding shares voting in favor of the deal.

Brookfield has $240 billion in assets under management spread out across North America, South America, Europe and Asia. With the completion of the deal, the company will take over Rouse’s portfolio, which includes 35 malls and retail centers in 21 states.

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