Author Topic: BAM - Brookfield Asset Management  (Read 324931 times)

fareastwarriors

  • Hero Member
  • *****
  • Posts: 3515
Re: BAM - Brookfield Asset Management
« Reply #410 on: March 26, 2018, 05:04:28 PM »


chrispy

  • Sr. Member
  • ****
  • Posts: 268
Re: BAM - Brookfield Asset Management
« Reply #411 on: March 27, 2018, 04:36:15 AM »
Wow.  Market reaction will be very interesting.  I take it BPY will remain primarily an office property owner?

"
GGP shareholders will have the option of either exchanging GGP shares for Brookfield shares or shares in the new REIT because a large number of the GGP shareholders are U.S. shareholders who donít want to own partnership units, Mr. Kingston said.
"

Astrea

  • Newbie
  • *
  • Posts: 36
Re: BAM - Brookfield Asset Management
« Reply #412 on: March 27, 2018, 05:48:29 AM »
"In conjunction with and in support of the proposed transaction, BAM has stated its intention to convert $500 million currently held in BPY Class C Junior Preferred Shares into BPY units at a price of $23.50 per unit, resulting in BAMís acquisition of approximately 21.3 million BPY units."

Seems like BAM thinks it is getting a sensible deal at $23.5 or 21% higher than latest closing price...

vince

  • Sr. Member
  • ****
  • Posts: 393
Re: BAM - Brookfield Asset Management
« Reply #413 on: March 27, 2018, 06:22:10 AM »
anyone know this company well enough to calculate the increase in fees owed from bpy as a result of this transaction? bam waived the increase for 1 year but after that it looks like a nice bump

vince

  • Sr. Member
  • ****
  • Posts: 393
Re: BAM - Brookfield Asset Management
« Reply #414 on: March 27, 2018, 06:53:14 AM »
base mgmt fees from all public partnerships for 2017 is 529 million and annualized incentive distributions (based on dividend growth of partnerships) is 198 million.  base mgmt fees are based on market cap so bpy accounts for close to 50% of 529 million.  and it looks like market cap is going to increase nicely

Jerry Capital

  • Full Member
  • ***
  • Posts: 103
Re: BAM - Brookfield Asset Management
« Reply #415 on: March 27, 2018, 07:01:04 AM »
Just nitpicking here a little Vince. The base management fees are based on total cap (market cap + preferred equity cap + debt net of cash) not market cap of the LP units.
Follow me on Twitter @JerryCap

vince

  • Sr. Member
  • ****
  • Posts: 393
Re: BAM - Brookfield Asset Management
« Reply #416 on: March 27, 2018, 07:25:38 AM »
thanks Jerry, great point.  I also found, in the supplemental, that bpy's base fees are 166 million.  do u have a rough number of the increase in capitalization on this transaction?

Mephistopheles

  • Hero Member
  • *****
  • Posts: 1520
Re: BAM - Brookfield Asset Management
« Reply #417 on: March 27, 2018, 09:53:02 AM »
Why is GGP down 4% today and nowhere near the 23.50?

racemize

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 2724
Re: BAM - Brookfield Asset Management
« Reply #418 on: March 27, 2018, 09:55:17 AM »
Why is GGP down 4% today and nowhere near the 23.50?

Because it will almost certainly be prorated between cash and shares of BPR and BPY is down at $18.9.

I get a spread of ~8% with the prorated amount.

Mephistopheles

  • Hero Member
  • *****
  • Posts: 1520
Re: BAM - Brookfield Asset Management
« Reply #419 on: March 27, 2018, 10:01:24 AM »
Why is GGP down 4% today and nowhere near the 23.50?

Because it will almost certainly be prorated between cash and shares of BPR and BPY is down at $18.9.

I get a spread of ~8% with the prorated amount.

Wow what a shitty deal