Brookfield Property Partners L.P. BPY

Bam now determines the value of Bpy via the .3979 metric .

[bbzzzz]

The value of Bpy now ( 17.74 us$ ) will now be determined by the trading value of Bam ( $44.75 closing value in US $ on Thursday ) until the shares are taken private by the date yet to be finalized months from now .

 $44.75 x .3976 ( the exchange metric issued by management ) =  $17.80 ( actually closed at 17.74 on Thursday )

 The exchange metric can also be applied to the Cdn dollar value of Bam .

The only way to participate in the future value of Bpy is to continue to own Bam . I am sure mgt. may bring it back to the market as an IPO and realize it's true value at a time when they deem the maximum value can be obtained .
 Remember that Bpy came out of Bam originally as a spin out to the then current investors . I believe this could happen again . History repeating itself ......

 Thanks for listening . I hope this provides a dialogue whereby we all benefit as long term investors of Bam .

 Ted

[Vette08]

Hi BB, Your post forced me to actually do some calculations on the details of the agreement and while I agree the risk of owning BPY shares from here will track BAM's share price but I do not think it is as linear as you calculated.  So here goes: (i) If I choose to take cash and I do not get prorated down, I get US$18.17, a 2.4% return (on the April closing price) for say 3 months

[bbzzzz]

Vette ,  I am sure all take value in your analysis of the Bpy to Bam proposal . I feel that each individual investor and their goals may determine how they will approach the offer assuming it stays the same as we approach the third quarter . If your goal is to participate with Bam holding Bpy for the long run then you may wish to have all your Bpy shares converted to Bam shares . This

[Vette08]

Hi again, The reason I responded to your initial post was that I did not quite agree with your statement/position that  ...."$44.75 x .3976 ( the exchange metric issued by management ) =  $17.80 ( actually closed at 17.74 on Thursday )"...... ie I do not think that your calculation above is the calculation on how BPY will track BAM. As of right now, and assuming the deal

[Vette08]

Couple of corrections from my last post: (i) The cash component of the deal is US$3.27 billion, not US$2.7 billion...typo. (ii) I said, "For example, if BAM shoots up $5 per share by the end of next week, I would conclude BPY should shoot up around $2.10 per share." I should have correlated based on % not $.  If BAM share price goes to US$50, then BPY NAV becomes approx US$18.83