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GlobeSt.com UPDATE: Brookfield, O&Y Revive Sale

TORONTO-Once stalled, locally based Brookfield Properties Corp.'s acquisition of O&Y Properties and O&Y REIT is alive again. The change from the original $1.67 billion (C$2 billion) agreement is that the transaction relating to O&Y REIT will now proceed by way of a take-over bid rather than an acquisition of assets and a redemption of units.

By Brian K. Miller | Updated on August 29, 2005

TORONTO-Locally based Brookfield Properties Corp. says it has new agreements in place for the acquisition of O&Y Properties Corp. and O& Y REIT, which have a combined office portfolio of 9.3 million sf in five Canada markets. A different agreement stalled in July after O&Y Properties unitholders voted in favor of it but O&Y REIT unit holders did not.

Brookfield, an owner of some 46 million sf, says its bidding consortium, which includes the Canada Pension Plan Investment Board (“CPP Investment Board”) and Arca Investments Inc., has revised its agreement to acquire the shares of O&Y Properties and entered into a new agreement to acquire the limited voting units of O&Y REIT for a combined total of $1.67 billion (C$2 billion). According to the agreement, the consortium will acquire for cash the outstanding common shares of O&Y Properties at $10.65 (C$12.72) per share and the outstanding units of O&Y REIT for $13.59 (C$16.25) per unit.

The change from the original agreement is that the transaction relating to O&Y REIT will now proceed by way of a take-over bid rather than an acquisition of assets and a redemption of units. The acquisition of O&Y Properties, largely unchanged from the original deal, is conditional on approval of the transaction by 66 2/3% of O&Y Properties’ shareholders voting at a special meeting of shareholders to be held in October 2005.

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