Brookfield Acquires New Owner of Carlsbad Mall

CARLSBAD—The former Westfield Carlsbad mall here has changed hands for the second time in less than six months. New York-based Rouse Properties said it late February that it would be bought out by an affiliate of Toronto-based Brookfield Asset Management for approximately $2.8 billion.

The new owner of Shoppes at Carlsbad, located near Legoland California, has been acquired by Brookfield Asset Management.

The property was bought by Rouse in November from Westfield Corp. of Australia. With that acquisition, the shopping center’s name was changed from Westfield Carlsbad to The Shoppes at Carlsbad . Since then, Brookfield bought Rouse in an all-cash purchase at $18.25 per share. The purchase price represents a premium of approximately 35% over Rouse’s closing stock price on January 15, 2016, the last trading day prior to Brookfield’s announcement of a proposal to acquire Rouse, and an increase of $1.25 per share from the $17.00 price originally proposed by Brookfield in January. “The Rouse team has built a great company with a strong platform and differentiated assets and we are pleased that Brookfield recognizes the value we have created in becoming a leader in our sector,” David Kruth, a board member of Rouse said in a press release. “Since forming the special committee last month, and with the assistance of our financial and legal advisors, we have focused on evaluating options available to maximize value for Rouse and its shareholders. The Special Committee determined that Brookfield’s increased proposal provides shareholders with compelling value as well as a high degree of execution certainty, further validating the strength of the platform that Rouse has built. We are pleased to have reached this agreement, which we believe benefits all Rouse shareholders.” The retail center is home to a strong existing lineup of 150 retailers such as Macy’s, Forever 21, LOFT, Victoria’s Secret, Vans, Panera Bread, Peet’s Coffee & Tea, and features high-quality entertainment and lifestyle tenants including a 12-screen Regal Cinema s with luxury seating and a state-of-the-art 24 Hour Fitness. Rouse had planned a strategic renovation initiative to improve rental rates, occupancy, leasing and sales productivity, creating significant long-term value at the asset. Located immediately off Interstate 5 , the main north/south corridor in the state, the center is the only enclosed mall within a 15 mile radius, and caters to an extremely dense and affluent trade area of approximately 500,000 people with an average income of $84,000. The center, centrally located in Carlsbad, is also in proximity to the West Coast’s only LEGOLAND , luxury hotels such as the Four Seasons and Park Hyatt . Brookfield is a leading global alternative asset manager with approximately $225 billion of assets under management. The firm offers a range of public and private investment products and services which leverage our expertise and experience, and provide us with a distinct competitive advantage in the markets in which we operate. Brookfield has 700 investment professionals and 30,000 operating employees in 20 countries around the world.