The Firm represents The Blackstone Group in the $8.9 billion acquisition of Trizec Properties, Inc. and Trizec Canada Inc. by Blackstone and Brookfield Properties Corporation. Trizec Properties, a U.S. publicly-traded REIT, is one of the largest owners and operators of commercial office properties in the United States. Trizec Properties has ownership interests in and manages 61 office properties totaling approximately 40 million square feet concentrated in the metropolitan areas of seven major U.S. markets. Trizec Canada is a Canadian public company that holds, among other assets, an approximate 38% stake in Trizec Properties. Brookfield Properties is a public company whose portfolio of office properties comprises 67 commercial properties totaling 48 million square feet and ten development properties totaling eight million square feet in the United States and Canada.
A company to be jointly owned by Blackstone and Brookfield will acquire Trizec Properties, and Brookfield will acquire Trizec Canada. Brookfield will manage and operate 18.5 million square feet of properties located in New York, Washington, D.C., downtown Los Angeles and Houston. Blackstone will manage and operate 5.4 million square feet of properties located in West Lost Angeles, San Diego and New York. Prior to the closing of the acquisition, Blackstone or other parties are expected to acquire 12.1 million square feet of properties located in various cities from Trizec Properties.
The joint venture will be financed with approximately $5 billion of new property and corporate debt in addition to equity funding from Blackstone, Brookfield and its institutional partners.
The Simpson Thacher team working on the transaction includes: Alan Klein, Brian Stadler, Eric Swedenburg, James Wallace and Conan McIntyre (M&A); Greg Ressa, Scott Kobak, Sas Mehrara, Ari Stavsky, Wendy Yu and Andrew Silverman (Real Estate); John Hart and Nancy Mehlman (Tax); Wonda Joseph (Employee Benefits); and Rebecca Mancuso and Peter Walgren (Summer Associates).