Brookfield Office Properties Inc (USA) (BPO), Mpg Office Trust Inc (MPG): A New York Landlord Is Stepping Up the Pace

Page 1 of 2

Upward momentum seems to be building for Brookfield Office Properties Inc (USA) (NYSE:BPO), which set a new 52-week high of $19.19 on May 14. In recent weeks, the company gave clear indications that it is further gearing up to partake in the potential rewards from the blooming prospects of the commercial real estate sector.

Brookfield Office Properties Inc (USA) (NYSE:BPO)

In an announcement this early June, the company said it has closed on up to $1 billion on commitments for financing two of the four office towers at its Lower Manhattan, NYC, property, the Brookfield Office Properties Inc (USA) (NYSE:BPO) Place. A bank consortium, whose members include Deutsche Bank, Royal Bank of Canada, Citibank, Bank of America and Wells Fargo, has committed an initial $800-million loan, with a provision for an additional $200 million.

Lower Manhattan’s kingpin

Brookfield Office Properties Inc (USA) (NYSE:BPO) has a total of six Lower Manhattan properties with a combined total of 13 million square feet, making it the biggest landlord in the New York area. Besides the Brookfield Office Properties Inc (USA) (NYSE:BPO) Place, which was a revamp of the former World Financial Center complex, the company likewise owns and manages One New York Plaza and One Liberty Plaza.

In May, it was also reported that Brookfield Office Properties Inc (USA) (NYSE:BPO) paired with mall owner General Growth Properties in bidding for 650 Madison Avenue, a 27-story office and retail building in one of the upscale shopping and office districts of Manhattan. The duo of New York-based Crown Acquisitions and Highgate, however, won the bid at $1.29 billion.

Larger domain looms in LA

While Brookfield Office Properties Inc (USA) (NYSE:BPO) missed this chance to reassert its dominance in the New York commercial real estate space, it seems well en route toward further broadening its footprint in Los Angeles. This June 14, the company, through DTLA Holdings, its direct, wholly owned subsidiary, commenced a cash tender offer to purchase all outstanding shares of preferred stock of Mpg Office Trust Inc (NYSE:MPG) at $25.00 per share.

This tender offer is pursuant to a merger agreement Brookfield and Mpg Office Trust Inc (NYSE:MPG) signed this April. Once the deal is consummated, DTLA Holdings, wherein Brookfield has 47% controlling interest, will own Wells Fargo Tower and three other MPG properties in LA, as well as the Bank of America Plaza and two other LA properties of Brookfield.

The pact likewise covers DTLA Holdings’ purchase of Mpg Office Trust Inc (NYSE:MPG)’s common stock, for which  $3.15 per share was offered, a 21% premium to the closing price at the day prior to the announcement of the agreement. This price offer is also a 64% premium to the Mpg Office Trust Inc (NYSE:MPG)’s common stock closing price on the day that the company’s board approved engaging financial advisers for assistance in a potential strategic transaction.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!