First, lets go back to some of these old posts:
I always maintained that $BAM (or its affiliates) had every intention and would eventually raise its stake so it would effectively control $GGP (thus the reason they turned down the $SPG offer) despite their claims to the contrary.
Brookfield Property Partners has agreed to buy an additional $1.4 billion worth of General Growth stock, bringing its stake in the Chicago–based REIT to 32 percent. “As a result of this and General Growth’s strong organic growth prospects, we believe that the investment will earn a return that exceeds our target range of 12 percent to 15 percent,” said Ric Clark, CEO of Brookfield Property Group, in a press release. Brookfield Property Partners ($BPY), a subsidiary of Toronto-based Brookfield Asset Management, owns 300 office and retail properties totaling 250 million square feet. Its portfolio also includes a 37 percent stake in General Growth spinoff Rouse Properties and 2.9 million square feet of Brazilian retail properties.
The transaction is part of a reorganization of a Brookfield Asset Management-led consortium of investors that helped recapitalize General Growth when it emerged from bankruptcy protection in March 2010. In April 2013, Brookfield Property Partners bought Brookfield’s interest in the consortium. Now, several of the original investors have cashed out, and the consortium is being consolidated. Its total stake in General Growth will be 40 percent after the latest deal closes in the fourth quarter.
From the $BAM webiste:
Richard (Ric) Clark
Ric is a Senior Managing Partner and global head of real estate at Brookfield Asset Management ($BAM), CEO of Brookfield Property Partners, chairman of Brookfield Office Properties, a member of the boards of directors of General Growth Properties and co-heads Brookfield’s opportunistic real estate investing programs with Barry Blattman
We should also note that $BAM owns 55% of $BPY.
This is why I liquidated my $GGP position. The self dealing, conflicts of interest and outright misstatements from Brookfield at all levels are something I want no part of….now or ever….
Remember, Flatt/Clark orchestrated this pseudo takeover of GGP (without an auction or shareholder vote) by BAM while sitting on the Board of Directors and managements of both organizations
For more on $BAM please follow the link and read Roddy Boyd’s outstanding work