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Brookfield Lines Up CalPERS, TIAA To Help Fund GGP Takeover

Augusta Mall in Augusta, Ga., one of the properties Brookfield acquired when it bought GGP

Brookfield Property Partners has secured support from a series of high-profile backers to help pay for its buyout of GGP Inc.

Future Fund, TIAA affiliate TH Real Estate, the California Public Employees’ Retirement System and a CBRE unit will invest in certain GGP malls, Bloomberg reports.

The company had previously said its $15B acquisition of GGP would be partly funded with $4B from joint-venture equity partners, though they were not identified at the time. Brookfield already owns 34% of GGP.

In a deal reached last month, Brookfield is acquiring GGP for $9.25B in cash in a merger that will form one of the largest publicly traded owners of retail properties in the country. Brookfield plans to redevelop several of GGP's properties, which are largely in prime locations, into mixed-use destinations.

There was widespread criticism of the deal after it was announced, with many analysts saying the offer was inadequate. Brookfield Chairman Ric Clark, however, told Bisnow that there was broad investor support for the sale.

“Our view is [GGP malls] are better owned in a diversified portfolio. And in the long term, it’s going to be a win-win for shareholders,” he said last month. “We think our organization has the ability to help our mall division create value.”