Brookfield Property Partners (BPY +1.8%) offered a 15% premium to Friday's closing price for Brookfield Canada Office Properties (BOXC +18.7%), but it's low relative to BOXC's NAV, says BMO's Heather Kirk. The lowball initial bid is consistent with BPY's play for Brookfield Office and Rouse Properties (those were eventually raised 5-7%).
Brookfield may need to hike its price, says Canaccord's Mark Rothschild. BOXC owns much of Canada's hard-to-find high quality commercial property, and BPY will find growth difficult without getting these assets.
Brookfield Property Partners (NYSE:BPY) is offering $30.10 cash per unit, a premium of 14.2% to the 30-day weighted average price in Toronto of Brookfield Canada Office Properties (NYSE:BOXC) for the 16.9% of the company it currently does not own.
Unitholders representing about 3.65M units, or 23% of unaffiliated BOX units have already signaled their support of the proposal.