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TORONTO-The locally headquartered public company Brookfield Properties Corp. says its $2-billion (US$1.6-billion) joint venture acquisition of O&Y Companies is in limbo. Shareholders of privately held O&Y Properties approved the acquisition, but too many unitholders of its publicly held sister company O&Y REIT rejected the deal, which was contingent upon approval from the shareholders of both operations.Originally announced in June, the planned acquisition by New York City-based Brookfield, its Toronto-based subsidiary BPO Properties and the Canada Pension Plan Investment Board was scheduled to close mid-July. “Because the O&Y REIT and O&Y Properties transactions are inter-conditional, we will be assessing our options and will decide in the near future how best to proceed in the circumstances,” says Brookfield president/CEO Ric Clark in a Thursday afternoon announcement. Clark could not immediately be reached Thursday evening for additional comment.O&Y REIT owns 24 office properties and O&Y Enterprise, which provides third party management and leasing services to approximately 35 million sf across Canada. O&Y Properties is a Canadian commercial real estate company with two principal assets: First Canadian Place in Toronto and a 42% ownership interest in O&Y REIT. The combined portfolio of the two companies consists of 25 high-quality office properties totaling 9.7 million sf in six Canada markets, principally Toronto, Calgary and Ottawa.Brookfield Properties, the Toronto-based unit of Canadian mining conglomerate Brascan Corp., owns 46 commercial properties and development sites totaling 46 million sf, including the World Financial Center in New York City and BCE Place in Toronto. BPO Properties, 89% owned by Brookfield Properties owns interests in 17 commercial properties and development sites totaling 14 million sf, including the home of the Toronto Stock Exchange and Bankers Hall in Calgary.

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