Bullboard - Stock Discussion Forum Brookfield Property Partners L.P. BPY

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Brookfield Property Partners LP owns, operates, and invests in commercial properties in North America, Europe, Australia, and Brazil. The company focuses on being a global owner and operator of real estate, providing investors with diversified exposure to some of the iconic properties and acquiring high-quality assets at a discount to replacement cost or intrinsic value. Its operating segment... see more

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Brookfield Property Partners L.P. > Obvious Arbitrage play here

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Post by dileas48s on Jul 16, 2020 9:38am

Obvious Arbitrage play here

I received my paperwork to tender my shares this week.

I can offer my shares up to Aug 24 for $12USD (I think that's the date).

My shares are in my Canadian account, so if I assume $12 USD = ~ $16.20 CDN I can pretty much buy shares all day long at $15 - $15.30 (or lower) and make at least $0.90 CDN / share over about 5 weeks (dependant on exchange obviously).

Is there something I'm missing here, other than the possiblity that BPY might rescind the offer?

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Comment by Capharnaum on Jul 16, 2020 10:13am

If more shares get tendered than the offer, than you would only return a proportional number of shares back. Ie: if 25% of shares get tendered, then only 4/5 shares tendered will be bought back. So you'll be left with 1/5 shares. So it's not guaranteed, but imo they won't hit 20%.

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Comment by dileas48s on Jul 16, 2020 10:32am

Thank you for pointing that out. Also, in my scenario I was considring retaining the shares I currently own, and buying up to the amount (extra) that I could tender in the future.

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