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Huge US mall operator rejects a deal that would have made a retail property giant

GGP, one of the widest owners and operators of U.S. shopping centers, has rejected a $14.8 billion buyout furnish from its biggest shareholder, Brookfield Property Partners LP, people cognizant of with the matter said on Sunday.

Brookfield Property made a $23-per-share scratch and stock offer last month for the 66 percent of GGP it does not already own. A combine of Chicago-based GGP and Brookfield Property would create one of the world’s largest publicly switched property companies.

Brookfield Property is considering a new offer for GGP after a exclusive committee of GGP’s board directors turned down its Nov. 11 offer as unfit for, and negotiations between the two companies are expected to continue, the sources said.

The players do not plan to make a new announcement unless their negotiations lead to a contract or end unsuccessfully, the sources added, asking not to be identified because the discussions are intimate.

GGP and Brookfield Property did not immediately respond to requests for comment.

Brookfield Acreage’s efforts to buy GGP have come as mall owners across the United States are matching as a result of many retailers losing out to e-commerce firms such as Amazon.com.

GGP allocates ended trading at $23.43 on Friday, giving it a market capitalization of $22.2 billion. Its allowances have underperformed the wider stock market this year because of the assembly’s exposure to troubled retailers such as Sears Holdings.

Brookfield Trait Partners shares ended trading on Friday at $21.61, giving it a sell capitalization of $15.2 billion.

Brookfield Property, an owner and operator of job and retail properties, said last month the deal would aside it to grow, transform or reposition GGP’s shopping centers.

The acquisition would frame a company with an ownership interest in almost $100 billion honest estate assets globally and annual net operating income of about $5 billion, according to Brookfield Resources.

It is not the first time Brookfield Property’s attempt to buy out a real estate investment depute in which it already owns a big stake has been rejected. Last year, Prod Properties, another U.S. mall owner, rejected an offer by Brookfield Characteristic, its largest shareholder, only to subsequently agree to a sweetened $2.8 billion present oneself.

Other GGP peers are also coming under pressure. Rival mall holder Macerich currently is under pressure from activist hedge back Third Point Management to explore options including a sale.

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