Brookfield Property Partners

Brookfield Property Partners
Public company
Traded as NYSE: BPY
TSX: BPY.UN
Industry Commercial Real Estate
Founded 2013
Headquarters Brookfield Place, Toronto, Canada
Key people
 Ric Clark, Chairman
Brian Kingston, CEO
Revenue Increase US$4.9 billion (2015)
Increase US$3.8 billion (2015)
Total assets Increase US$71.9 billion (2015)
Number of employees
 14,000 [1]
Website www.brookfield.com

Brookfield Property Partners (NYSE: BPY; TSX: BPY.UN) is a global company which owns, operates and invests in commercial property. The majority of the company’s assets are located in North America, Europe, and Australia. Brookfield Property Partners' presence is growing in China, Brazil and India.[2]

History

Brookfield Property Partners (BPY) was formed through a spin-off from Brookfield Asset Management in April, 2013.[3] On April 15, 2013 shares of BPY began trading on the Toronto and New York Stock Exchanges.[4] The new company formed by the spin-off consolidated in one place all of Brookfield’s commercial property assets. BPY also has ownership interests in General Growth Properties, Inc. (GGP) and Rouse Properties, Inc. (RSE)[3]

During the 12-month period between October 2013 and October 2014 BPY surpassed one million square feet of leasing deals in London.[5]

In June 2014, BPY completed the acquisition of Brookfield Office Properties (BYO) through a tender offer.[6] On June 10, 2014 BYO was de-listed from the Toronto Stock Exchange; and ten days later it was removed from the New York Stock Exchange.[7][8]

Following a $300 million renovation, the company celebrated the grand opening of Brookfield Place, New York City’s 375,000 square-foot retail space, in March, 2015.[9]

In a joint venture with Qatar Investment Authority, BPY completed the takeover of 100 percent of London’s Canary Wharf Group (CWG), in April, 2015. The deal acquired Songbird Estates Plc., which owned 69 percent of CWG, in a deal that valued Songbird at about 2.6 billion pounds ($3.9 billion US).[10]

Also in April, 2015 the company signed the law firm Skadden Arps to be the anchor tenant in its 2.1 million square-foot office tower in New York City, One Manhattan West.[11]

In October, 2015, BPY acquired a Brookfield residential development in Brooklyn called “Greenpoint Landing.” [12] BPY also sold a 44% interest in the $8 billion Manhattan West development in New York to the Qatar Investment Authority in October, 2015.[13]

Together with a joint venture partner, Korea Investment Corp., Brookfield Property Partners acquired Berlin’s Potsdamer Platz, in January, 2016, in a deal valued at $1.41 billion. The property is a major public square in central Berlin consisting of 17 buildings, 10 streets, and two squares covering over 2,900,000 square-feet. The buildings are a mix of office, retail and residential space, including a hotel and leisure-use space. Over 480 international and German companies are headquartered there.[14][15]

Also in January, 2016, Brookfield Property Partners, with a joint venture partner, Investment Corporation of Dubai, launched an office development project in Dubai, ICD Brookfield Place, in a deal valued at $1 billion.[16]

Management

Brian Kingston is the CEO of Brookfield Property Partners and Ric Clark is the chairman of the company. In March, 2014, the Financial Times featured an article about Clark.[17]

Markets

Brookfield Property Partners operates within five main real estate platforms: office, retail, industrial, multifamily and hotel.[2][17] The company has also begun expansion into developing markets.

Luxury and landmark retail

Some of the company’s properties include major urban landmark centers: Brookfield Place New York; Canary Wharf in London; Potsdamer Platz in Berlin; Brookfield Place Toronto; Bank of America Plaza in Los Angeles; Bankers Hall in Calgary; Darling Park in Sydney; and Brookfield Place Perth.[18] When BPY signed a lease with Hudson’s Bay, owners of Saks Fifth Avenue department stores, in September, 2014, it was seen as the beginning of a new luxury era in downtown Manhattan.[19]

Industrial property

In 2012 Brookfield entered the industrial-property sector. Between 2012 and 2014 BPY purchased Atlanta-based Industrial Developments International and London-based Gazeley Ltd, industrial-property companies focused on the US, UK, Europe and Asia. Together the two companies are called IDI Gazeley, and is part of Brookfield Logistics Properties.[18][20]

Residential

Between 2010 and 2015 BPY went from owning virtually zero apartment units to the acquisition of 42,000. The company began developing this market when it bought a 65 percent share in the Fairfield Residential Company.[12] Together with Fairfield, BPY launched the Brookfield Fairfield U.S. Multifamily Value Add Fund, which is pursuing investment opportunities to acquire undervalued or underperforming multifamily apartment properties in infill or supply-constrained locations suitable for renovation, repositioning and operational turnaround.[21]

Hotels

In 2014 the company expanded into the hospitality-property market with the acquisition of Thayer Lodging Group, one of the few private-equity firms that focuses on hotel investment.[22] Additionally, Brookfield is invested in other hotels including the Atlantis Hotel in the Bahamas [23] and the Hard Rock Hotel & Casino in Las Vegas.[24][25]

Developing markets

In recent years, Brookfield has been expanding into developing markets. In December 2015 and January 2016, Brookfield acquired seven office buildings in Sao Paolo and Rio de Janeiro, Brazil.[26] In late 2014, Brookfield acquired a portfolio of office parks in India.[27] In 2013, the company bought a stake in prime Shanghai Property from Shui On Land in the district of Xintiandi for $500 million.[28]

References

  1. ↑ "Corporate Profile" (PDF). Brookfield Property Partners. 31 December 2015. Retrieved 13 April 2016.
  2. 1 2 "The Company". Brookfield Property Partners. Retrieved 12 April 2016.
  3. 1 2 Yu, Hui-yong (12 April 2013). "Brookfield Spinoff Plans to Expand Beyond Offices, Malls". Retrieved 12 April 2016.
  4. ↑ "Brookfield Asset Management Completes Spin-Off of Brookfield Property Partners". Yahoo Finance. 15 April 2013. Retrieved 12 April 2016.
  5. ↑ Wallace, James (27 October 2014). "Brookfield Property surpasses one million sq ft of leasing deals in 12 months". CoStar. Retrieved 12 April 2016.
  6. ↑ Carmiel, Oshrat; Levitt, David M. (1 October 2013). "Brookfield Property Offers to Acquire Brookfield Office". Bloomberg. Retrieved 12 April 2016.
  7. ↑ "Brookfield Property Partners Completes Acquisition of Brookfield Office Properties". London: The News. Marketwired. 9 June 2014. Retrieved 12 April 2016.
  8. ↑ "Brookfield Property Partners Completes Acquisition of Brookfield Office Properties". Brookfield Property Partners. 9 June 2014. Retrieved 12 April 2016.
  9. ↑ Murray, Barbra (30 March 2015). "Downtown Manhattan's Brookfield Place Celebrates Grand Opening". Commercial Property Executive. Retrieved 12 April 2016.
  10. ↑ Callanan, Neil (20 April 2015). "Qatar and Brookfield take full control of Canary Wharf". Business News Network. Retrieved 12 April 2016.
  11. ↑ Levitt, David M. (14 April 2015). "Brookfield to Start Manhattan Tower After Signing Skadden". Bloomberg. Retrieved 12 April 2016.
  12. 1 2 KUSISTO, LAURA (27 October 2015). "Brookfield Bets Big on Brooklyn". Wall Street Journal. Retrieved 12 April 2016.
  13. ↑ Sender, Henny (28 October 2015). "Qatar fund backs Brookfield's $8bn Manhattan West project". Financial Times. Retrieved 12 April 2016.
  14. ↑ PATNAUDE, ART (4 January 2016). "Brookfield Acquires Potsdamer Platz in Berlin for $1.4 Billion". The Wall Street Journal. Retrieved 12 April 2016.
  15. ↑ Sender, Henny (4 January 2016). "Brookfield and KIC buy Berlin real estate". Financial Times. Retrieved 12 April 2016.
  16. ↑ Fattah, Zainab (20 January 2016). "Brookfield Plans $1 Billion Office Tower in Dubai Finance Center". Bloomberg. Retrieved 12 April 2016.
  17. 1 2 Raval, Anjli (10 March 2014). "Ric Clark takes Brookfield Property Group into new sectors and territories". Financial Times. Retrieved 12 April 2016.
  18. 1 2 "Brookfield Property Partners: Office". Brookfield Property Partners. Retrieved 12 April 2016.
  19. ↑ Grant, Peter (24 September 2014). "Saks Deal Is A Sign of New Luxury Era in Downtown Manhattan". Wall Street Journal. Retrieved 12 April 2016.
  20. ↑ Slatin, Peter (27 May 2014). "Brookfield Makes a Play for Industrial Sector". Wall Street Journal. Retrieved 12 April 2016.
  21. ↑ "Brookfield Property Partners: Multifamily". Brookfield Property Partners. Retrieved 12 April 2016.
  22. ↑ Karmin, Craig (20 May 2014). "Brookfield to Expand Hotel-Industry Presence With Purchase of Thayer Lodging Group". Wall Street Journal. Retrieved 12 April 2016.
  23. ↑ Jinks, Beth (27 April 2012). "Kerzner Hands Atlantis Bahamas to Brookfield, Palm to Dubai". Bloomberg. Retrieved 12 April 2016.
  24. ↑ "Brookfield Property Partners: Hospitality". Brookfield Property Partners. Retrieved 12 April 2016.
  25. ↑ Gower, Patrick; Gopal, Prashant (2 June 2015). "Brookfield Buying U.K. Center Parcs Resorts From Blackstone". Bloomberg. Retrieved 12 April 2016.
  26. ↑ Grant, Peter (5 May 2015). "Big Property Investors Hunt for Bargains in Brazil". Wall Street Journal. Retrieved 12 April 2016.
  27. ↑ Shah, Aditi (26 June 2016). "Factbox - Investors ready $1 billion war chest for office assets in India". Reuters. Retrieved 12 April 2016.
  28. ↑ Fung, Esther (31 October 2013). "Brookfield Buys Stake in Prime Shanghai Property". Wall Street Journal. Retrieved 12 April 2016.

External links

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