Brookfield Buying Trizec Properties
Brookfield Properties Corp., together with the Blackstone Group, is acquiring Trizec Properties and Toronto-based Trizec Canada in a transaction valued at a total of $8.9 billion.
Brookfield, a New York-based office real estate investment trust, is acquiring the common stock of Trizec Properties at $29.01 per share in cash and is acquiring the shares of Trizec Canada for $30.97 per share in cash. The additional $1.96 cash consideration per Trizec Canada share reflects the value of Trizec Canada's net assets other than its approximate 38% interest in Trizec Properties, Trizec reports.
The price for the Trizec Properties common stock represents an 18% premium over its June 2, 2006 closing price of $24.60 on the New York Stock Exchange. And the price for Trizec Canada shares represents a 30% premium over its closing price on the Toronto Stock Exchange on June 2, the REIT reports.
Tim Callahan, president and CEO, Trizec Properties, noted that Trizec "continues to be undervalued in the public markets" and added that the sale delivers better value to Trizec shareholders. Mr. Callahan does not expect to be a part of the organization after the anticipated closing of the sale in the third or fourth quarter.
Trizec Properties owns and manages a portfolio of 61 office properties totaling about 40 million square feet, located in major U.S. markets, according to the REIT.
And Trizec Canada is "primarily engaged in the U.S. real estate business through its interest in Trizec Properties."
Brookfield Properties own and manages office properties in the U.S. and Canada, with a portfolio of 67 properties totaling 48 million square feet, in addition to properties in development, according to Trizec. (c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com