Rouse Properties, Inc. (RSE) Rockets on Buyout Offer

Shares of New York, NY, based Rouse Properties, Inc. (RSE) rose on Tuesday, against the backrop of a mixed day in stocks overall. Rouse's stock was up 29.73%, rising $4.01 per share, to close at $17.50, on volume of 6,379,063 shares. The regional mall operator has received a cash purchase offer from Brookfield Asset Management (BAM).


Founded in 2012, Rouse Properties, Inc. is a real estate investment trust (REIT) that develops, operates and manages retail rental property.
It owns and manages regional malls across the US, from California to New Hampshire. Its portfolio includes more than 25 million square feet of retail space in 36 malls in 21 states. The company's stock trades on the New York Stock Exchange.

On Tuesday, Rouse announced that Toronto based Brookfield Asset Management offered to buy Rouse for $17 per share in cash in an offer made on Saturday, January 16. The offer represents a 26% premium above Rouse's closing price on January 15, 2016. Rouse has has formed a committee to study the buyout offer.

Rouse has 58.02 million shares outstanding, so the bid by Brookfield would value Rouse at $986.3 million.

The offer by Brookfield includes acquisition of all the outstanding shares of the Rouse’s common stock, other than those shares currently held by Brookfield Property Partners and its affiliates, which represent approximately 33% of Rouse's outstanding common stock. The offer is all cash, and is not subject to financing contingencies, nor is it subject to any due diligence on Rouse.

"Our offer provides an attractive opportunity for Rouse shareholders to realize a significant premium to recent public market pricing," said Brian Kingston, CEO of Brookfield Property Group.

Brookfield is a 100+ year old global alternative asset management firm, with $225 billion in assets under management. Its investments include real estate, renewable energy, infrastructure and private equity. The company operates in 20 countries, and has more than 30,000 employees, including 700 investment professionals.

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Published on Jan 20, 2016
By Kevin Mercadante

Copyrighted 2016. Content published with author's permission.

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