Brookfield Property Partners L.P. BPY

Mall Giants Bought J.C. Penney For a Bargain

[magnuswave]

DJ Mall Giants Bought J.C. Penney For a Bargain 
Dow Jones News2:12 PM Eastern Daylight Time Sep 10, 2020
1412 ET - While some investors are concerned about the mall owners' purchase of yet another retailer, this time J.C. Penney, some analysts point out that they got a bargain for control of these assets that could be redeveloped in the future into apartments, hotels and other uses. Simon Property Group and Brookfield Property Partners' agreed to pay $300M in cash and assume $500M of debt for the ownership of 490 stores, which translates to a price tag of around $600,000 in cash per store, "a far cry from the peak when boxes traded for $10 million to $200 million," said Piper Sandler analysts. If Amazon or others look to buy out or sign long term leases, the landlords will have a substantial upside, they added.

[Lacas24]

Thanks for that link. I would have missed that. This price structure changes the JCP deal entirely. They got a smoking deal.

[Vette08]

Lacas, When you say "they" got a smoking deal, is it BPY or BAM or one its Funds?  I doubt BPY has 100% of the Brookfield position but not sure?  Everything I read just says Brookfield or Brookfield Property "Group".     Still long, Vette

[Matamata]

JCPenney's retail and operating assets are set to be acquired by a joint venture between mall owners Simon Property Group and Brookfield Property Partners, lawyers for the department store said in bankruptcy court Wednesday afternoon. The transaction still needs to be approved by a judge in bankruptcy court, and competing bids could be evaluated in a court-supervised auction. Lawyers expect

[Lacas24]

They means SPG and BPY. This is a Brookfeld Properties Group deal. Of course indirectly BAM is involved since they own 60% of BPY.

[Vette08]

Lacas, Thanks and I just find it weird BPY (or Simon) issued a press release.  This would be a material transaction ($1.8B) for BPY who only has a market cap of $5B.    And I have found when "Brookfield Property Group" is used, it does not necessarily mean the legal entity of BPY, that is, they use "Brookfield Property Group" to include their Funds etc. 

[Lacas24]

Their corporate structure is convoluted but Brookfield Property Group and Property Partners LP are the same. It has 3 segments. Core office, core retail and LP Investment. This deal belongs to BPY not BAM. I could be wrong of course but I don't see BAM anywhere on any press release. Market cap doesn't tell the right picture. Just alone cash and their undrawn credit line is almost as big

[Lacas24]

NVM my previous post. You might be right about the group structure including BAM as well.