- Brookfield Asset Management on Monday said it proposed to buy the mall owner GGP Inc. for $14.8 billion.
- Brookfield already owns about 34% of GGP and wants to buy the rest of the company for $23 a share.
- The Canadian asset manager would gain GGP’s class A retail properties in urban centers at a time when foot traffic is declining because more people are shopping online.
- GGP has a special committee that’s looking into the proposal with Goldman Sachs as its financial adviser.
Brookfield Asset Management has proposed to buy the mall owner GGP for $14.8 billion to expand its real-estate footprint.
The Canadian investor is offering $23 a share for the outstanding shares it doesn’t already own, it said in a statement on Monday. Brookfield has a roughly 34% stake in GGP that it first bought in 2010 to rescue the company from bankruptcy.
The offer confirmed earlier news reports.
The combined company would own assets worth about $100 billion, Brookfield said, giving the asset manager access to more so-called class A retail spaces in urban centers.
Traffic to malls has been declining as more customers have chosen to shop online, forcing some mall owners to find other uses for their properties. More than 6,400 store closings have been announced this year by chains including RadioShack and Kmart.
GGP was one of the worst-performing class A mall operators in the second quarter based on foot traffic, which fell 5.7% on a rolling quarterly basis through May, according to a report by the data-intelligence firm Thasos.
In a separate statement, GGP acknowledged that it received the offer on Saturday and said it had created a special committee to look into it. Goldman Sachs will work with the committee as financial adviser.
GGP shares rose 4% premarket to $23.50, topping the offer price.