Brookfield Properties Corp. (TSX:BPO), a New York-based company that's 51 per cent owned by Brookfield Asset Management of Toronto (TSX:BAM.A), says it's being positioned as a pure-play office-property business with a global reach.
"Given its rich resource base and strong trading relationship with the world's fastest growing economies, investment in Australia should put Brookfield Properties in a strong position to experience meaningful growth as the global economies emerge from the economic downturn," BPO president and CEO Ric Clark said in a statement from New York.
``Following these transactions, Brookfield Properties will have leading office portfolios in each of the United States, Canada and Australia, as well as a modest but growing interest in the United Kingdom, transforming Brookfield Properties into the global security for investors looking for ownership in premier office assets.''
Brookfield Properties will add office properties in Sydney, Melbourne and Perth to its current portfolio, which includes major properties such as Brookfield Place in Toronto, Bankers Hall in Calgary and the World Financial Center in Manhattan, near the ill-fated World Trade Centre that was attacked by terrorists.
Brookfield also owns 2.8 million square feet of Ottawa inventory, including Place De Ville I and II, as well as the Jean Edmonds Towers.
Brookfield Properties also said Friday it plans to sell Carma Developers, its residential property arm, to sibling Brookfield Homes Corp., (NYSE:BHS), which already has holdings in California and Washington, D.C.
Brookfield Homes, which is 82 per cent owned by Brookfield Asset Management, would add Carma's operations in Alberta, Colorado and Texas if the transactions unfold as anticipated.
The deal between Brookfield Properties and Brookfield Homes has yet to be negotiated, pending a review and recommendation by independent directors and approval by minority shareholders.
Brookfield Homes said in a brief statement that a merger of it and Carma would benefit shareholders by creating a more diversified North American residential land and housing company.
Brookfield Asset Management shares slipped 31 cents to C$25.57 in Toronto while Brookfield Properties stock gained 46 cents to $16.50. In New York, Brookfield Homes shares slipped a penny to US$7.32.
