TORONTO—Brookfield Asset Management said Thursday it intended tobuy the remaining 30% of Brookfield Residential Properties itdoesn't already own. The all-cash offer is for $23 per share, orabout $846 million, representing a premium of approximately 20% onthe closing price for BRP shares Wednesday.


BAM has presented its proposal to the Calgary-basedhomebuilder's board of directors. Separately, BRP said Thursday ithad received the non-binding proposal and had established acommittee of independent directors to review it.


As of its 2013 annual report filed this past March, BRPcontrolled about 110,000 lots in 11 markets across Canada and theUS, including a total of approximately 45,000 lots in Calgary andEdmonton, Alta. The fifth largest residential platform by land andhousing assets in North America, it was created in March 2011 uponthe merger of Brookfield Homes Corp. and Brookfield OfficeProperties' residential division, Carma Developers LP. Priorto the merger, it was 100% owned by BAM.


Bloomberg reported Thursday that shares of BRP have declined 18%over the past year, while those of BAM have risen 13% in that time.Toronto-based BAM has about $200 billion in assets under managementglobally.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.