Brookfield Property Partners LP affiliates plan to fully exercise their series A-1 warrants to buy GGP Inc. common shares that expire Nov. 9.
In an Aug. 1 letter to GGP CEO Sandeep Mathrani, Brookfield said the warrants to be exercised will be settled in cash and will exclude about 1.5% held on behalf of clients who have not yet elected a settlement method.
The Brookfield affiliates disclosed in an Aug. 2 ownership filing that they beneficially own a 35% stake in GGP. The stake represents 335,536,370 common shares, including 77,302,758 shares that can be issued upon the exercise of warrants held.
In August 2016, the consortium that Brookfield Asset Management Inc. formed to recapitalize the company, then known as General Growth Properties Inc., wound down, with Brookfield retaining a 34% stake in GGP.
On its second-quarter earnings call, GGP announced that it decided to stay the course after its strategic review.