Brookfield Office Properties Inc T.BPO.P.A

brookfield purchase of san fran apts

[DJ441c]

How can brookfield  with their poor credit rating    gt together with  another firm and spen $1 billion on  San fran  apts       benefit to bpy?

[pierrelebel]

The credit rating problem is specific to Brookfield Office Properties (BPO) not Brookfield Corporation or other Brookfield companies. A few months ago 5iResearch offered: "BN does not have a legal obligation to the preferreds. That being said, a default on these shares would be very detrimental to the group's overall investor confidence, and we would assume the parent would support them

[alertmeipp]

BN does not, but BPY does have legal obligation to the preferreds. And BAM which BN still owns 75% of, is getting hundreds of millions per year distribution from BPY. BPY book value I think is about 50 billions, which is owned by BAM. The only way BAM or BN can kill preferred is 1. write off 50 billions of book value from BPY - hurts BAM big time. 2. the ~400mm disturbtuion coming from BPY to

[Carena]

Hi DJ, I have not seen that deal referenced in any of the BPY filings, maybe I missed it as it was first announced back in August.   Based on the media report I read, I think it is a deal completed within their residential division which is outside the BPY legal structure. Nonetheless, I want to see BN et al  doing lots of real estate deals.  This is good. Carena