HAMILTON, BERMUDA—Brookfield Property Partners and Qatar Investment Authority have forged an alliance whereby the QIA will pay $1.8 billion for a stake in BPY and the two organizations will form a 50/50 joint venture to bid on London's Canary Wharf complex. QIA will own approximately 9% of BPY following the company's issue of exchangeable preferred equity securities to the sovereign wealth fund.

“The placement of $1.8 billion of equity is a great endorsement of our global premier asset strategy,” says BPY CEO Ric Clark. “We are on the path to building the world's leading portfolio of best-in-class property assets. This capital will enable us to launch BPY to the next phase.”

The exchange will take place in three tranches of $600 million each, at a price of US $25.70 per unit. QIA's stake in BPY will give it the right to designate one member of the REIT's board.