Brookfield Transfers Interest in Canary Wharf

Ontario-based Brookfield Investments Corp. has sold 15 percent of its interest in The Canary Wharf Group, to Brookfield Europe L.P. The sale is actually a transfer of assets from one subsidiary to another, and part of a much larger merger process. Brookfield Investments, which was formerly Brascade Corp., is an investment company with investments primarily in the forest products and property sectors. The company is owned by Brookfield Asset Management, based in Ontario Canada.Sachin Shah, CFO at Brookfield, told CPN, “This is an integral step for Brookfield Asset Management in consolidating its European operating platform.”The Canary Wharf Group, or CWG, owns several commercial properties in the United Kingdom. For selling the 15 percent interest, Brookfield Investments will receive about 42 percent limited partnership in Brookfield Europe, which has a fair market value today of about $497 million. Brookfield will also receive cash that is the equivalent of $158 million. The sale, expected to close in a few days, is anticipated to greatly increase liquidity for Brookfield Investments, at the same time as it will significantly diversify the company’s real estate portfolio. The other 85 percent ownership in The Canary Wharf belongs to a number of players, including a company called Songbird based in London with U.S investors, and a few pension fund owners in Canada.This is actually the baby steps of a much larger merger. Brookfield Investments is in the process of merging assets including construction and development assets located in the Middle East with all the other European assets they own, to create one company under the umbrella ownership of Brookfield Europe. This will include the assets of Multiplex, the largest construction and real estate development company in Australia.Brookfield has currently the equivalent of $90 million in US dollars under management, including projects that deal with renewable power and infrastructure.