Brookfield Property Partners Explained

Brookfield Property Partners L.P.
Type:Public
Isin:BMG162491077[1]
Industry:Commercial real estate
Location:Hamilton, Bermuda[2]
Subsid:Brookfield Properties
Area Served:Worldwide
Revenue: US$62.752 Billion (Fiscal Year Ended December 31, 2020)[3]
Operating Income: US$1.544 Billion (Fiscal Year Ended December 31, 2020)
Net Income: US$0.707 Billion (Fiscal Year Ended December 31, 2020)
Assets: US$343.696 Billion (Fiscal Year Ended December 31, 2020)
Equity: US$112.642 Billion (Fiscal Year Ended December 31, 2020)
Num Employees:19,000[4] *Includes Brookfield Property Group employees and operating employees employed by affiliated and/or portfolio companies owned by Brookfield or Brookfield-sponsored funds.
Parent:Brookfield Asset Management

Brookfield Property Partners L.P. is a global commercial real estate firm that is a publicly traded limited partnership and a subsidiary of Brookfield Asset Management, an alternative asset management company. Its portfolio includes properties in the office, multi-family residential, retail, hospitality, and logistics industries throughout North America, Europe, and Australia. Its subsidiary Brookfield Properties is responsible for the management of these facilities.[5]

History

Brookfield Property Partners (BPY) was formed through a spin-off from Brookfield Asset Management in April 2013.[6] On April 15, 2013, shares of BPY began trading on the Toronto and New York Stock Exchanges.[7] The new company formed by the spin-off consolidated all of Brookfield's commercial property assets in one place.[8] Between October 2013 and October 2014, BPY surpassed one million square feet of leasing deals in London.[9]

In June 2014, BPY completed the acquisition of Brookfield Office Properties (BPO) through a tender offer.[10] On June 10, 2014, BPO was de-listed from the Toronto Stock Exchange; ten days later, it was removed from the New York Stock Exchange.[11] [12] Following a $300 million renovation, the company opened Brookfield Place, New York City's 375,000 square-foot retail space, in March 2015.[13] 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).[14] That same month, 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.[15]

In October 2015, BPY acquired a Brookfield residential development in Brooklyn called "Greenpoint Landing"[16] and sold a 44% interest in the $8 billion Manhattan West development in New York to the Qatar Investment Authority.[17]

Together with a joint venture partner, Korea Investment Corp., Brookfield Property Partners acquired Berlin's Potsdamer Platz in a deal valued at $1.41 billion in January 2016. 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.[18] [19] 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.[20]

Brian Kingston is the CEO of Brookfield Property Partners, and Ric Clark is the chairman of the company.[21]

During 2023, Brookfield announced the publicly traded company would be taken private by Brookfield Corporation (Brookfield Asset Management Ltd).[22]

Property types and markets

Brookfield Property Partners operates real estate in multiple sectors including office, retail, industrial, hospitality, self-storage, student housing[23] and developing markets.[24]

Office

Brookfield owns and operates office buildings in cities including New York, London, Toronto, Los Angeles, and Sydney. Some of the company's properties include Brookfield Place in New York and Bank of America Plaza in Los Angeles.[25] [26]

Retail

Brookfield Property Partners operates retail properties in the U.S., Europe, Brazil and Asia.[27]

In 2014, Brookfield signed a lease with Hudson's Bay Company, owners of Saks Fifth Avenue department stores, in downtown Manhattan.[28] [29] [30]

In 2016, Brookfield acquired Rouse Properties, taking over 35 malls and retail centers in 21 states.[31]

Brookfield first acquired an interest in GGP Inc. in 2016. In August 2018, Brookfield acquired the remaining shares of GGP.[32]

Concurrent with the GGP deal, Brookfield acquired retail properties on Bleecker St. in Manhattan from New York REIT Inc. with plans to revitalize the area. The company's plans included creating an incubator for online and emerging retailers, and hosting cultural events and art installations within the storefront spaces.

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. The companies were subsequently merged and now operate as a single entity, IDI Gazeley.[33]

Multifamily

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. 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.[34] In 2015, a Brookfield-sponsored fund acquired Associated Estates Realty Corp. for $2.5 billion, adding to its multifamily portfolio 15,000 units across 10 U.S. states.[35]

Hospitality

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.[36] In 2015, a Brookfield-sponsored fund acquired Center Parcs UK, an operator of five short-break holiday villages in England, for £2.45 billion. Additionally, Brookfield is invested in other hotels including the Atlantis Paradise Island in the Bahamas,[37] The Diplomat Resort & Spa in South Florida, and the Hard Rock Hotel & Casino in Las Vegas.[38] [39]

Triple Net Lease

In 2014, a Brookfield-sponsored fund acquired Capital Automotive and its portfolio of 450 triple-net-leased automotive dealerships across the U.S. for $4.3 billion.[40]

Self-storage

In 2016, a Brookfield-sponsored fund acquired Simply Self Storage, an owner/operator of 90 self-storage facilities in the US totaling 6.8 million square feet, for $829 million. Through further acquisitions, Brookfield has doubled the size of its self-storage portfolio to 175 facilities totaling approximately 14 million square feet.[41]

Student housing

In 2016, a Brookfield sponsored fund acquired a portfolio of 13 student housing properties totaling 5,700 beds primarily in four university markets in the UK for a total purchase price of approximately £400 million.[42]

Manufactured housing

In 2017, a Brookfield-sponsored fund acquired a portfolio of 135 manufactured housing communities comprising 33,000 pads across 13 US states.[43]

Developing markets

In recent years, Brookfield has been expanding into developing markets. In 2013, the company bought a stake in prime Shanghai Property from Shui On Land in the district of Xintiandi for $500 million.[44] In late 2014, Brookfield acquired a portfolio of office parks in India.[45]

In December 2015 and January 2016, Brookfield acquired seven office buildings in São Paulo and Rio de Janeiro, Brazil.[46] In 2016 Brookfield commenced construction in Dubai on ICD Brookfield Place, a 1.5 million square foot office and retail development located in the Dubai International Financial Centre district.[47] In late 2016 Brookfield expanded into South Korea, when it acquired the International Finance Centre Seoul (IFC Seoul) featuring three high-rise office towers, a three-level retail mall, and a five-star Conrad hotel.[48]

External links

Notes and References

  1. Web site: BROOKFIELD PROPERTY PARTNERS LP PARTNERSHIP UNITS WHEN ISSUED (BPY) . Markets Insider . 2019-04-08 . 2019-04-08 . https://web.archive.org/web/20190408183736/https://markets.businessinsider.com/stocks/brookfield_property_partners_lp_partnership_units_when_issued-stock . dead .
  2. Web site: 2016 Annual Report. Brookfield Property Partners LP. 8 May 2017. 2016.
  3. Web site: Brookfield Property Partners L.P. 2020 Annual Report . brookfield.com . 14 December 2021 . 31 December 2020 . 14 December 2021 . https://web.archive.org/web/20211214114925/https://www.brookfield.com/sites/default/files/2021-05/BAM-2020AnnualReport.pdf . live .
  4. Web site: Brookfield Property Partners L.P. 2018 ANNUAL REPORT . 41 . 2019-04-08 . 2023-11-09 . https://web.archive.org/web/20231109183704/https://bpy.brookfield.com/404 . live .
  5. Web site: The Company. Brookfield Property Partners. 12 April 2016. 25 March 2016. https://web.archive.org/web/20160325141524/http://brookfieldpropertypartners.com/content/the_company-34104.html. live.
  6. Web site: Yu. Hui-yong. Brookfield Spinoff Plans to Expand Beyond Offices, Malls. Bloomberg News. 12 April 2016. 12 April 2013. 22 April 2016. https://web.archive.org/web/20160422075022/http://www.bloomberg.com/news/articles/2013-04-12/brookfield-spinoff-plans-to-expand-beyond-offices-malls. live.
  7. Web site: Brookfield Asset Management Completes Spin-Off of Brookfield Property Partners. Yahoo Finance. 12 April 2016. 15 April 2013. 20 April 2016. https://web.archive.org/web/20160420152227/http://finance.yahoo.com/news/brookfield-asset-management-completes-spin-182735123.html. live.
  8. Web site: General Growth Properties Announces Corporate Name Change to GGP. Finance.Yahoo.com. 9 May 2017. 17 January 2017. 31 January 2017. https://web.archive.org/web/20170131052943/http://finance.yahoo.com/news/general-growth-properties-announces-corporate-212000172.html. live.
  9. Web site: Wallace. James. Brookfield Property surpasses one million sq ft of leasing deals in 12 months. CoStar. 12 April 2016. 27 October 2014. https://web.archive.org/web/20160423171901/http://www.costar.co.uk/en/assets/news/2014/October/Brookfield-Property-surpasses-one-million-sq-ft-of-leasing-deals-in-12-months. 2016-04-23.
  10. Web site: Carmiel. Oshrat. Levitt. David M.. Brookfield Property Offers to Acquire Brookfield Office. Bloomberg. 12 April 2016. 1 October 2013. 22 April 2016. https://web.archive.org/web/20160422060305/http://www.bloomberg.com/news/articles/2013-09-30/brookfield-property-partners-offers-to-buy-brookfield-office. live.
  11. Web site: Brookfield Property Partners Completes Acquisition of Brookfield Office Properties. London: The News. Marketwired. 12 April 2016. 9 June 2014. 22 April 2016. https://web.archive.org/web/20160422082529/http://www.londonthenews.com/news/Press+Releases/20140609/58120103/Brookfield-Property-Partners-Completes-Acquisition-of-Brookfield-Office.htm. live.
  12. Web site: Brookfield Property Partners Completes Acquisition of Brookfield Office Properties. Brookfield Property Partners. 12 April 2016. 9 June 2014. 30 April 2016. https://web.archive.org/web/20160430182133/http://www.brookfieldpropertypartners.com/content/2014_press_releases/brookfield_property_partners_completes_acquisition-39943.html. live.
  13. Web site: Murray. Barbra. Downtown Manhattan's Brookfield Place Celebrates Grand Opening. Commercial Property Executive. 12 April 2016. 30 March 2015. 23 September 2016. https://web.archive.org/web/20160923162121/https://www.cpexecutive.com/post/downtown-manhattans-brookfield-place-celebrates-grand-opening/. live.
  14. Web site: Callanan. Neil. Qatar and Brookfield take full control of Canary Wharf. Business News Network. 12 April 2016. 20 April 2015. 27 April 2016. https://web.archive.org/web/20160427051145/http://www.bnn.ca/News/2015/4/20/Qatar-and-Brookfield-Take-Full-Control-of-Canary-Wharf-Group.aspx. live.
  15. Web site: Levitt. David M.. Brookfield to Start Manhattan Tower After Signing Skadden. Bloomberg. 12 April 2016. 14 April 2015. 22 April 2016. https://web.archive.org/web/20160422080602/http://www.bloomberg.com/news/articles/2015-04-14/brookfield-to-start-manhattan-tower-after-signing-skadden. live.
  16. Web site: Kusisto. Laura. Brookfield Bets Big on Brooklyn. Wall Street Journal. 12 April 2016. 27 October 2015. 25 April 2016. https://web.archive.org/web/20160425153311/http://www.wsj.com/articles/brookfield-makes-big-bet-on-brooklyn-1445964778. live.
  17. Web site: Sender. Henny. Qatar fund backs Brookfield's $8bn Manhattan West project. Financial Times. 12 April 2016. 28 October 2015. 9 November 2023. https://web.archive.org/web/20231109183720/https://www.ft.com/content/4c9a17d2-7d66-11e5-98fb-5a6d4728f74e#axzz45bErH3tg. live.
  18. Web site: Patnaude. Art. Brookfield Acquires Potsdamer Platz in Berlin for $1.4 Billion. The Wall Street Journal. 12 April 2016. 4 January 2016. 11 April 2016. https://web.archive.org/web/20160411214445/http://www.wsj.com/articles/brookfield-acquires-potsdamer-platz-in-berlin-for-1-4-billion-1451915790. live.
  19. Web site: Sender. Henny. Brookfield and KIC buy Berlin real estate. Financial Times. 12 April 2016. 4 January 2016. 9 November 2023. https://web.archive.org/web/20231109183745/https://www.ft.com/content/01ee8cf8-b22d-11e5-8358-9a82b43f6b2f#axzz45bErH3tg. live.
  20. Web site: Fattah. Zainab. Brookfield Plans $1 Billion Office Tower in Dubai Finance Center. Bloomberg. 12 April 2016. 20 January 2016. 22 April 2016. https://web.archive.org/web/20160422075037/http://www.bloomberg.com/news/articles/2016-01-20/brookfield-plans-1-billion-office-tower-in-dubai-finance-center. live.
  21. News: Brookfield Property Names Kingston CEO, Clark Becomes Chairman. 2015-11-05. Bloomberg.com. 2020-03-19. en. 2020-03-19. https://web.archive.org/web/20200319185429/https://www.bloomberg.com/news/articles/2015-11-05/brookfield-property-names-kingston-ceo-clark-becomes-chairman. live.
  22. Web site: Value . Trapping . 2023-03-08 . Brookfield Property Preferreds: Time To Say Goodbye (NASDAQ:BPYPN) Seeking Alpha . 2023-05-02 . seekingalpha.com . en . 2023-05-02 . https://web.archive.org/web/20230502154104/https://seekingalpha.com/article/4585705-brookfield-property-preferreds-time-to-say-goodbye . live .
  23. News: Brookfield set to enter student housing market with £420m deal. Property Week. 2018-06-27. 2018-06-27. https://web.archive.org/web/20180627202626/https://www.propertyweek.com/news/brookfield-set-to-enter-student-housing-market-with-420m-deal/5079487.article. live.
  24. Web site: Ric Clark takes Brookfield Property Group into new sectors and territories. Raval. Anjli. 10 March 2014. Financial Times. 12 April 2016. 9 November 2023. https://web.archive.org/web/20231109183720/https://www.ft.com/content/0eae97c6-9f51-11e3-a48e-00144feab7de#axzz3OjLgKxk7. live.
  25. News: Huge Lease Extension Inked at Bank of America Plaza. Los Angeles Downtown News - The Voice of Downtown Los Angeles. 2018-06-27. 2015-04-14. https://web.archive.org/web/20150414012129/http://www.ladowntownnews.com/news/huge-lease-extension-inked-at-bank-of-america-plaza/article_66fe2d96-de4e-11e4-8216-77ba40d64695.html. live.
  26. News: Wall Street is awash in subleases—a bad sign for landlords. Crain's New York Business. 2018-06-27.
  27. Web site: Clark . Richard, B . 15 March 2013 . Canadian Prospectus and U.S. Informations Statement, Brookfield Property Partners L.P. . https://web.archive.org/web/20230325104130/https://www.sec.gov/Archives/edgar/data/1545772/000119312513143302/d510541dex992.htm . 25 March 2023 . U.S. Securities and Exchange Commission . 25 March 2023 . bot: unknown .
  28. Web site: Saks Deal Is A Sign of New Luxury Era in Downtown Manhattan. Grant. Peter. 24 September 2014. Wall Street Journal. 12 April 2016. 25 April 2016. https://web.archive.org/web/20160425163056/http://blogs.wsj.com/developments/2014/09/24/saks-deal-is-a-sign-of-new-luxury-era-in-downtown-manhattan-2/. live.
  29. Web site: Hudson Bay Company Headquarters. 2014-09-24. The Real Deal New York. 2017-05-09. 2017-10-06. https://web.archive.org/web/20171006113836/https://therealdeal.com/2014/09/24/hudsons-bay-consolidates-offices-at-brookfield-place/. live.
  30. Web site: HBC Consolidates Space and Signs Lease at Brookfield Place. 2014-09-24. Commercial Observer. 2017-05-09. 2023-11-09. https://web.archive.org/web/20231109183707/https://commercialobserver.com/2014/09/hbc-consolidates-space-and-signs-lease-at-brookfield-place/. live.
  31. Web site: Brookfield completes $2.8B acquisition of mall REIT Rouse Properties Real Estate Weekly. 2017-05-11. 2016-07-07. 2017-09-22. https://web.archive.org/web/20170922194220/http://rew-online.com/2016/07/07/brookfield-completes-2-8b-acquisition-of-mall-reit-rouse-properties/. dead.
  32. News: Brookfield Plans Retail Reboot on Bleecker Street. Morris. Keiko. 2018-04-22. Wall Street Journal. 2018-07-20. 0099-9660. 2018-07-20. https://web.archive.org/web/20180720195051/https://www.wsj.com/articles/brookfield-plans-retail-reboot-on-bleecker-street-1524402875. live.
  33. Web site: Slatin. Peter. Brookfield Makes a Play for Industrial Sector. Wall Street Journal. 12 April 2016. 27 May 2014. 25 April 2016. https://web.archive.org/web/20160425154930/http://www.wsj.com/articles/brookfield-makes-a-play-for-industrial-sector-1401230933. live.
  34. Web site: Brookfield Property Partners: Multifamily. Brookfield Property Partners. 12 April 2016. 25 March 2016. https://web.archive.org/web/20160325140808/http://brookfieldpropertypartners.com/content/property_portfolio/multifamily-34120.html. live.
  35. News: REIT Activist Scores Win In Associated Estates $2.5B Sale To Brookfield. Gara. Antoine. Forbes. 2017-05-09. 2018-01-01. https://web.archive.org/web/20180101030412/https://www.forbes.com/sites/antoinegara/2015/04/22/reit-activist-scores-win-in-associated-estates-2-5b-sale-to-brookfield/#105ecae33ade. live.
  36. Web site: Karmin. Craig. Brookfield to Expand Hotel-Industry Presence With Purchase of Thayer Lodging Group. Wall Street Journal. 12 April 2016. 20 May 2014. 25 April 2016. https://web.archive.org/web/20160425151657/http://www.wsj.com/articles/SB10001424052702304422704579574193675052518. live.
  37. Web site: Jinks. Beth. Kerzner Hands Atlantis Bahamas to Brookfield, Palm to Dubai. Bloomberg. 12 April 2016. 27 April 2012. 3 April 2016. https://web.archive.org/web/20160403224759/http://www.bloomberg.com/news/articles/2012-04-27/kerzner-deal-hands-atlantis-bahamas-to-brookfield-palm-to-dubai. live.
  38. Web site: Brookfield Property Partners: Hospitality. Brookfield Property Partners. 12 April 2016. 10 June 2016. https://web.archive.org/web/20160610042929/http://www.brookfieldpropertypartners.com/content/property_portfolio/hotel-39940.html. live.
  39. Web site: Gower. Patrick. Gopal. Prashant. Brookfield Buying U.K. Center Parcs Resorts From Blackstone. Bloomberg. 12 April 2016. 2 June 2015. 22 April 2016. https://web.archive.org/web/20160422061835/http://www.bloomberg.com/news/articles/2015-06-02/brookfield-to-buy-center-parcs-from-blackstone-no-terms-given. live.
  40. News: Capital Automotive Sells for $4.3 Billion - Dealer eProcess. 2014-09-05. Dealer eProcess. 2017-05-09. 2016-10-30. https://web.archive.org/web/20161030132235/http://www.dealereprocess.com/capital-automotive-sells-for-billions/. live.
  41. Web site: Report Brookfield Asset Management Agrees to Buy Simply Self Storage for $830M. 2016-01-08. www.insideselfstorage.com. 2017-05-11. 2017-04-03. https://web.archive.org/web/20170403064510/http://www.insideselfstorage.com/news/2016/01/report-brookfield-asset-management-agrees-to-buy-simply-self-storage-for-830m.aspx. live.
  42. Web site: CoStar UK – The Leader in Commercial Property Information. www.costar.co.uk. 2017-05-11. 2017-09-22. https://web.archive.org/web/20170922145426/http://www.costar.co.uk/en/assets/news/2017/January/Brookfield-prices-215m-UK-student-housing-CMBS/. live.
  43. Web site: Brookfield Asset Management To Acquire MHC Portfolio for $2 Billion - CoStar Group. www.costar.com. 2017-05-11. 2017-04-20. https://web.archive.org/web/20170420185307/http://www.costar.com/News/Article/Brookfield-Asset-Management-To-Acquire-MHC-Portfolio-for-$2-Billion/182052. live.
  44. Web site: Brookfield Buys Stake in Prime Shanghai Property. 31 October 2013. Wall Street Journal. Fung. Esther. 12 April 2016. 25 April 2016. https://web.archive.org/web/20160425052443/http://www.wsj.com/articles/SB10001424052702304527504579169432280430994. live.
  45. Web site: Factbox – Investors ready $1 billion war chest for office assets in India. 26 June 2016. Reuters. Shah. Aditi. 12 April 2016. 22 April 2016. https://web.archive.org/web/20160422235149/http://in.reuters.com/article/india-reits-idINKBN0F10WP20140626. live.
  46. Web site: Grant. Peter. Big Property Investors Hunt for Bargains in Brazil. Wall Street Journal. 12 April 2016. 5 May 2015. 9 April 2016. https://web.archive.org/web/20160409190439/http://www.wsj.com/articles/big-property-investors-hunt-for-bargains-in-brazil-1430818384. live.
  47. News: Work begins on $1bn ICD Brookfield Place tower in DIFC The National. 2017-05-10. 2017-04-28. https://web.archive.org/web/20170428162005/http://www.thenational.ae/business/property/work-begins-on-1bn-icd-brookfield-place-tower-in-difc. live.
  48. News: Brookfield and CIC Team Up For $2.7B Purchase of IFC Seoul. 2016-11-21. Mingtiandi. 2017-05-10. 2017-04-27. https://web.archive.org/web/20170427205116/http://www.mingtiandi.com/real-estate/outbound-investment/brookfield-and-cic-team-up-for-2-7b-purchase-of-ifc-seoul/. live.

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