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BROOKFIELD, Wis. — Barb Feest wishes she could take back her vote for Wisconsin governor. The suburban Milwaukee woman cast her ballot for Republican Scott Walker in November. But she could only shake her head recently as she listened at a public forum to how Walker’s proposed budget cuts could affect schools. “He’s trying to balance the budget on the backs of teachers,” Feest said. “It took so long to get our schools where they are, and they’re going to cut it down in, what, two years? It’s not right.” Almost five months after the election, Feest and some other Republican voters are having doubts about their choices at the ballot box. Although they consider themselves fiscal conservatives, many of the same people who put Walker and other GOP leaders into office are now having second thoughts, largely because the cuts they are seeking could put the quality of their cherished local schools at risk. To ease a projected $3.6 billion budget deficit, Walker has sought to eliminate collective-bargaining rights for most public employees, including teachers – a move that has stirred an intense national debate about union rights and drawn tens of thousands of protesters to the Capitol. But that’s not Walker’s only school-related proposal. His two-year spending plan includes an 8 percent cut in aid to schools – about $835 million. And he wants to require districts to reduce their property-tax authority by an average of $550 per pupil – a move that makes it more difficult for schools to compensate for the lost money. The forum drew about 100 people, and about half, including Feest, came to find out how bad the cuts would be and express their support for teachers. The others who spoke supported Walker’s proposals, and some even suggested the governor seek more teacher concessions such as raising the minimum retirement age above 55. High school math teacher Ronn Blaha, 41, said he felt like a “punch-drunk boxer,” taking one hit after another from the community because Walker had completely vilified the entire teaching profession. “I voted for him because I wanted some restraint on frivolous spending,” Blaha told The Associated Press, adding that he now regrets his vote. “I did not anticipate that he considered education a frivolity.” Walker isn’t the only governor proposing education cuts. Under the budget offered by Ohio Gov. John Kasich, state aid to K-12 schools would actually increase, but overall funding would drop because of allocation changes and loss of stimulus dollars. Individual districts will learn more in days to come. Even longtime Republican voters are worried about the consequences of education cuts. And some are asking whether the quest for a balanced budget justifies gutting top schools that took decades to create. “It all concerns me,” said Donna Leslie, a West Chester, Ohio, mother whose youngest child is a senior in high school. “There are cuts that need to be made, but I don’t think we’re going about it in the right way.” She declined to say whether she voted for Kasich but said she supported a proposal on the same ballot to levy a tax for the Lakota school district in the southwestern corner of the state. She says the tax was voted down because “the tea party was just raging.” Some acknowledge that classroom cuts are inevitable, and many of them are looking for alternatives to expose their children to music and art. Others are confident that school officials will find ways to absorb the cuts without letting education suffer. Leslie expects school funding to continue declining and anti-tax attitudes to make it more difficult to pass school-related tax increases. To be sure, some Republicans say their governors are doing exactly what they were elected to do. Jane Peavler, co-chairwoman of the Brookfield district’s Parent Leadership Council, voted for Walker in November and continues to support him. In an email to the AP, she said the governor showed “great courage” in proposing his budget, and said she was confident that schools would find ways to adapt without letting education suffer. In Mason, Ohio, John Meyer has been an active critic of school administrators. He thinks schools can cut costs without hurting the quality of education. “There’s that great concern and fear, that if we don’t pay these exorbitant salaries, somewhere it’s going to affect our children’s education. I don’t believe that’s necessarily true,” said Meyer, whose two children attended local schools and are now in college. He said school employee benefits and the regular pay raises that administrators and teachers with extra education receive are beyond what can be afforded in the district of nearly 11,000 students. Wisconsin’s cuts affect every district, including wealthy Waukesha County’s Elmbrook schools, which face a $4.2 million budget shortfall in part because of declining enrollments and a hampered ability to raise money through property taxes. To compensate, the district may have to lay off some teachers and ask the remaining ones to teach an additional class period, Superintendent Matt Gibson said. It may also have to cut art and music classes, and average class sizes might creep upward, he added. Those outcomes are acceptable to Andrea Boll, who has three kids in the Elmbrook district. The 51-year-old said as long as the core curriculum in subjects such as math and science remained strong, parents could help pay extra for extra-curricular sports and music programs. However, some parents said severe budget cuts could have long-term effects that are impossible to predict. Andy Vrakas, 47, who has children in the fourth and sixth grades, said good schools do more than help students – they also raise property values and attract employers who know employees will be willing to relocate to those areas. Vrakas, an independent who has voted for Republican governors in the past but not for Walker, said he might even home-school his kids if certain programs get cut or scaled back. “Long-term, if test scores decline and the reputation declines, people might be sorry,” he said. ___ Sewell reported from West Chester, Ohio. ___ Dinesh Ramde can be reached at dramde(at)ap.org.

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Could Walker’s Proposed Schools Budget Cuts Backfire With GOP Voters?

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World Bank Acquires Washington HQ for $216 Million

December 13, 2010

The World Bank purchased its Washington, DC, headquarters building at 1225 Connecticut Ave. NW from Brookfield Office Properties (NYSE: BPO) for $216 million or $897 per square foot. Brookfield acquired the eight-story, 240,811-square-foot office…

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Former Brookfield Pres. Named CFO at General Growth

July 28, 2010

Steven J. Douglas, the former president of Brookfield Properties, was named executive vice president and chief financial officer/director of accounting and finance at General Growth Properties. He will head the firm’s finance operations as it emerges…

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General Growth Wins Court Approval of Brookfield-Led Bid, Trumping Simon

May 7, 2010

By Tiffany Kary and Daniel Taub May 7 (Bloomberg) — General Growth Properties Inc. , the second biggest U.S. mall owner, won bankruptcy court approval for an auction process that makes a group led by Brookfield Asset Management Inc. property the first bidder. General Growth fell 11 percent in New York trading. U.S. Bankruptcy Judge Allan Gropper in Manhattan approved General Growth’s plan over one proposed by the country’s biggest mall owner, Simon Property Group Inc. It gives Brookfield, Fairholme Capital Management LLC and Pershing Square Capital Management LP warrants to buy stock in the reorganized company in exchange for financing. Testimony at today’s hearing focused on whether the warrants might chill bidding. “As I understand the process, it is intended to open rather than close, the bidding,” Gropper said during the hearing, adding that General Growth’s equity holders, creditors and board all backed the Brookfield bid. General Growth, based in Chicago, said the bid is intended to serve as a so-called stalking horse for higher offers or help raise money from capital markets. Simon said the warrants would dilute General Growth’s value, prompting the Indianapolis-based company to withdraw from bidding. Simon made its last offer for General Growth last night. ‘Hastily Decided’ “We are disappointed that the GGP board hastily decided in less than 24 hours to accept substantially less value,” Simon Chief Executive Officer David Simon said in a statement. “GGP’s decision to proceed with a transaction that transfers hundreds of millions of dollars in value to the Brookfield consortium has caused us to conclude that we cannot reach a mutually beneficial transaction with GGP.” General Growth dropped $1.77 to $14.07 at 4 p.m. in New York Stock Exchange composite trading. Simon rose 80 cents, or 0.9 percent, to $85.68. “We think that the business is worth materially more than Simon thought it was,” said Glenn Tongue , managing partner of T2 Partners LLC, which owns more than 2 million General Growth shares. “We’re thrilled to have a mechanism through which we can own this company on a long-term basis, until it gravitates up to its intrinsic value.” Lorraine McGowan, a partner in the New York office of Orrick, Herrington & Sutcliffe LLP, said before today’s hearing that the “business judgment rule,” which says the bankruptcy court shouldn’t supplant the corporate governance of a company, would work in General Growth’s favor. ‘Carefully Vetted’ “The issues have been carefully vetted and negotiated by the board,” Gropper said. “This court cannot and will not substitute its judgment for that of the board.” The Brookfield-backed proposal approved today is worth $7 billion in equity. The group also agreed to loan the company as much as $1.5 billion if it can’t raise the funding elsewhere. General Growth lawyer Marcia Goldstein said the financing will allow the company to choose a final best offer and file its Chapter 11 reorganization plan by mid-July. Brookfield’s plan “gives all shareholders the chance to participate in the tremendous upside of this company for a very, very long time, as opposed to being cashed out at the bottom of the market,” Cyrus Madon , senior managing partner at Brookfield, said in an interview today. “We’re going to be working very hard to get through the rest of the bankruptcy process with the company, and then get to the task of creating value.” Offer Raised Last night, Simon raised its competing offer to about $6.5 billion, which would value General Growth at $20 a share. Its original bid on Feb. 16 would have given General Growth stockholders $9 a share, including $6 in cash. Both that plan and the new one would have paid in full all of General Growth’s unsecured creditors, who hold about $7 billion in debt. Ronen Bojmel, a managing director at General Growth’s financial adviser Miller Buckfire & Co., testified that the permanent warrants are worth about $688 million. They could vary in value from $200 million to $1.2 billion, depending on how the company is valued when it exits bankruptcy, he said. “The numbers are extraordinary, but this is an extraordinary case,” Gropper said. Under the revised Brookfield bid, Pershing Square will waive its share of interim warrants, and Toronto-based Brookfield will increase the strike price on its warrants to $10.75 from $10.50, Goldstein told Gropper today. Bruce Berkowitz , founder of Miami-based Fairholme, one of Brookfield’s two partners and General Growth’s largest creditor, said the warrants help balance the risk associated with a $15- per-share investment in General Growth. The company closed 93 cents below that price today, meaning that Fairholme, without the warrants, currently is losing about $173 million on the investment, he said in an interview today. ‘Far From Riskless’ “I promise you, these warrants are not free,” Berkowitz said. He added that he believes General Growth’s shares will rise, and expects his investment to be profitable. “I would not have offered the deal or done the deal if I didn’t think so. But it’s far from riskless.” Pershing Square’s CEO William Ackman offered to forgo 17 million interim warrants in an effort to push through Brookfield’s plan, saying Simon’s bid posed antitrust risks because it would unite the nation’s two largest mall owners. “General Growth is pleased, as this secures a $6.55 billion equity investment and a $2 billion backstop and has material improvements,” Goldstein told Gropper. She said General Growth’s board met twice since receiving Simon’s revised offer, and still found the Brookfield plan superior. General Growth filed the largest real estate bankruptcy in U.S. history in April 2009 after amassing $27 billion in debt making acquisitions. Its properties include New York’s South Street Seaport, Boston’s Faneuil Hall and the Grand Canal Shoppes and Fashion Show in Las Vegas. The case is In re General Growth Properties Inc., 09-11977, U.S. Bankruptcy Court, Southern District of New York (Manhattan). To contact the reporters on this story: Tiffany Kary in New York at tkary@bloomberg.net ; Daniel Taub in Los Angeles at dtaub@bloomberg.net .

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Elliott, Paulson Are Said to Weigh Investment in General Growth Properties

March 22, 2010

By Dan Levy, Saijel Kishan and Daniel Taub March 22 (Bloomberg) — Elliott Associates LP and Paulson & Co. are discussing a plan to team with Brookfield Asset Management Inc. to bring mall owner General Growth Properties Inc. out of bankruptcy, two people familiar with the talks said. The hedge funds, which have spoken with General Growth, would try to replace or join Bruce Berkowitz’s Fairholme Capital Management LLC and William Ackman’s Pershing Square Capital Management LP in a bankruptcy exit plan with Brookfield, said the people, who asked not to be identified because the talks are private. Fairholme and Pershing Square earlier this month offered to jointly invest $3.93 billion in General Growth in addition to $2.63 billion pledged by Toronto-based Brookfield. General Growth last month rejected a $10 billion buyout offer by Simon Property Group Inc. , the biggest U.S. mall owner, that would have given equity holders $9 a share and paid off unsecured creditors in cash. Simon is preparing a new offer, according to a person with knowledge of that plan. The Fairholme/Pershing proposal needs bankruptcy-court approval, giving other investors the chance to make competing bids. “The deal that was struck was better than the Simon original offer, but in our opinion did not represent full value for this company,” said Jim Sullivan , an analyst with Green Street Advisors in Newport Beach, California. “There may be others in the wings that may feel that it didn’t represent full value, and may be willing to step up.” Warrant Grant Under the plan by Fairholme and Pershing Square, Fairholme would receive seven-year warrants to buy 60 million shares of existing General Growth stock at an exercise price of $15 each. A new add-on to the Brookfield plan could be made more attractive if there were fewer warrants issued, Sullivan said. “The smaller the warrant grant, the better it is for the other stakeholders — the equity in particular,” he said. Elliott and Paulson’s alternative proposal may also include Luxor Capital Group LP or other funds, one of the people familiar with their plans said. Elliott has a 5.3 percent stake in General Growth, according to a March 18 regulatory filing. Paulson, based in New York, manages $32 billion. Elliott, founded by Paul Singer , oversees $16.2 billion out of New York. Armel Leslie , a spokesman for Paulson, declined to comment, as did a spokesman for Elliott. Officials at Luxor Capital didn’t return phone messages. Janice Aman, a spokeswoman for Fairholme, and Denis Couture , a spokesman for Brookfield, also declined to comment. Ackman didn’t immediately return phone messages. David Keating , a General Growth spokesman, declined to comment. Biggest Bankruptcy General Growth, based in Chicago, filed the largest real estate bankruptcy in U.S. history in April after amassing $27 billion in debt making acquisitions . Its malls include the Grand Canal Shoppes and Fashion Show in Las Vegas, Boston’s Faneuil Hall and South Street Seaport in New York City. New York-based Pershing Square is General Growth’s biggest equity investor, with a 25 percent economic interest, including 7.5 percent of its shares. Fairholme is the largest creditor, with about $1.83 billion of General Growth’s unsecured debt, Berkowitz and Ackman said in a letter filed March 9 with the U.S. Securities & Exchange Commission. Pershing Square owns about $434 million of unsecured debt, according to the letter. Their plan calls for Fairholme and Pershing Square to buy about 380 million new General Growth shares at $10 each. The investments would combine with 250 million shares Brookfield would buy, $1.5 billion in new debt Brookfield is raising, and a $250 million rights offering for a new company, General Growth Opportunities. Brookfield would backstop $125 million of that sale, meaning it will buy that much if other investors don’t, and Fairholme and Pershing would backstop the rest. Combined, more than $8 billion would be raised. Brookfield’s plan with Fairholme and Pershing would give General Growth equity holders $15 a share, compared with about $9 a share under Indianapolis-based Simon’s offer. General Growth shares have climbed past Brookfield’s offer, indicating investors expect a higher bid. They gained 5 cents to $16.80 in New York Stock Exchange composite trading today. To contact the reporters on this story: Dan Levy in San Francisco at dlevy13bloomberg.net; Saijel Kishan in New York at skishan@bloomberg.net ; Daniel Taub in Los Angeles at dtaub@bloomberg.net .

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General Growth Backers Add $3.9 Billion to Boost Brookfield’s Revival Plan

March 9, 2010

By Daniel Taub March 9 (Bloomberg) — General Growth Properties Inc. said its biggest debt and equity holders offered to jointly invest $3.93 billion in the company, bolstering a plan with Brookfield Asset Management Inc. to bring the mall owner out of bankruptcy. The investments from Bruce Berkowitz’s Fairholme Capital Management LLC and William Ackman’s Pershing Square Capital Management LP would allow unsecured creditors to be paid in full with cash, General Growth said in a statement last night. Their funds are in addition to $2.63 billion pledged by Brookfield. The cash payment matches a provision of a competing bid by Simon Property Group Inc. , which has offered to buy its biggest competitor for more than $10 billion and pay all unsecured creditors. Chicago-based General Growth rejected that bid and lined up the Brookfield investment last month with plans to split into two companies — part of a proposal that creditors called risky because of a reliance on debt and equity sales. “If BAM moves ahead with this structure, it removes most if not all uncertainty from their previous bid, and removes any doubt to whether it’s credible or not,” said Jim Sullivan , an analyst at Green Street Advisors in Newport Beach, California. New York-based Pershing Square is General Growth’s biggest equity investor, with a 25 percent economic interest, including 7.5 percent of its shares. Fairholme is the largest creditor with about $1.9 billion of General Growth debt, while Brookfield has about $500 million and Pershing Square owns about $434 million, according to a person familiar with the investments. New Shares Brookfield’s new plan calls for Fairholme and Pershing to buy about 380 million new General Growth shares at $10 each. The investments would combine with 250 million shares Brookfield would buy, $1.5 billion in new debt Brookfield is raising, and a $250 million rights offering for a new company, General Growth Opportunities. Brookfield will backstop $125 million of that sale, and Fairholme and Pershing Square will backstop the rest. Combined, more than $8 billion would be raised. “The proposal from Fairholme and Pershing Square builds on the significant momentum we have created to return GGP to a strong financial foundation for the future,” General Growth Chief Executive Officer Adam Metz said in the statement. “Our goal is to raise capital in the most cost-efficient way to maximize value for all of our stakeholders. We are pleased with the support shown by one of our largest unsecured debt holders and one of our largest equity holders.” The proposal must be approved by General Growth’s board and the bankruptcy court, and better offers may still emerge, the company said. Also, General Growth would have the right to reduce the $3.8 billion investment by $1.9 billion should it be able to raise equity capital on better terms. ‘Significant Contributions’ Ackman stepped down from General Growth’s board as part of the plan, the company said. “Bill Ackman has made significant contributions to GGP during his time on the Board,” Metz said. “We understand his decision to resign to facilitate Pershing Square’s participation in this proposal.” Simon Property spokesman Les Morris declined to comment. Brookfield’s plan gives General Growth equity holders $15 a share, compared with about $9 a share under Simon’s offer. The previous version of Brookfield’s plan called for General Growth to raise as much as $5.8 billion by issuing shares and new debt and through the sale of properties. The new plan “would, if accepted, deliver substantially all of the cash required to fulfill the company’s capital needs in connection with its emergence from bankruptcy and provide unsecured creditors with par plus accrued interest in cash,” General Growth said. Previous Plan Unsecured creditors said in a March 2 bankruptcy-court filing that the previous plan was too risky. Indianapolis-based Simon, in a separate filing, supported the creditors. “While Simon has offered to pay unsecured creditors in full in cash, the consideration to be offered to unsecured creditors under the ‘recapitalization’ is entirely subject to market risk,” David C. Bryan , Eric M. Rosof and Emil A. Kleinhaus, Simon’s attorneys, wrote in the filing. “If General Growth does not raise enough money to pay unsecured creditors, they will be stuck with the equity securities of a highly leveraged company.” David Fick , an analyst with Stifel Nicolaus & Co. in Baltimore, said the new plan is likely an effort to compel Simon to boost its offer. “These guys don’t have the ability to run these assets without the existing GGP management,” he said. “The Pershing Square and Brookfield interests are best aligned with getting a sale done.” General Growth, owner of New York’s South Street Seaport and Boston’s Faneuil Hall, filed the largest real-estate bankruptcy in U.S. history in April after amassing $27 billion in debt making acquisitions. Under its plan with Brookfield, General Growth would split into a company owning shopping malls and another that would own buildings and land with redevelopment possibilities. To contact the reporter on this story: Daniel Taub in Los Angeles at dtaub@bloomberg.net .

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General Growth Backers Add $3.9 Billion to Boost Brookfield’s Revival Plan

March 9, 2010

By Daniel Taub March 9 (Bloomberg) — General Growth Properties Inc. said its biggest debt and equity holders offered to jointly invest $3.93 billion in the company, bolstering a plan with Brookfield Asset Management Inc. to bring the mall owner out of bankruptcy. The investments from Bruce Berkowitz’s Fairholme Capital Management LLC and William Ackman’s Pershing Square Capital Management LP would allow unsecured creditors to be paid in full with cash, General Growth said in a statement last night. Their funds are in addition to $2.63 billion pledged by Brookfield. The cash payment matches a provision of a competing bid by Simon Property Group Inc. , which has offered to buy its biggest competitor for more than $10 billion and pay all unsecured creditors. Chicago-based General Growth rejected that bid and lined up the Brookfield investment last month with plans to split into two companies — part of a proposal that creditors called risky because of a reliance on debt and equity sales. “If BAM moves ahead with this structure, it removes most if not all uncertainty from their previous bid, and removes any doubt to whether it’s credible or not,” said Jim Sullivan , an analyst at Green Street Advisors in Newport Beach, California. New York-based Pershing Square is General Growth’s biggest equity investor, with a 25 percent economic interest, including 7.5 percent of its shares. Fairholme is the largest creditor with about $1.9 billion of General Growth debt, while Brookfield has about $500 million and Pershing Square owns about $434 million, according to a person familiar with the investments. New Shares Brookfield’s new plan calls for Fairholme and Pershing to buy about 380 million new General Growth shares at $10 each. The investments would combine with 250 million shares Brookfield would buy, $1.5 billion in new debt Brookfield is raising, and a $250 million rights offering for a new company, General Growth Opportunities. Brookfield will backstop $125 million of that sale, and Fairholme and Pershing Square will backstop the rest. Combined, more than $8 billion would be raised. “The proposal from Fairholme and Pershing Square builds on the significant momentum we have created to return GGP to a strong financial foundation for the future,” General Growth Chief Executive Officer Adam Metz said in the statement. “Our goal is to raise capital in the most cost-efficient way to maximize value for all of our stakeholders. We are pleased with the support shown by one of our largest unsecured debt holders and one of our largest equity holders.” The proposal must be approved by General Growth’s board and the bankruptcy court, and better offers may still emerge, the company said. Also, General Growth would have the right to reduce the $3.8 billion investment by $1.9 billion should it be able to raise equity capital on better terms. ‘Significant Contributions’ Ackman stepped down from General Growth’s board as part of the plan, the company said. “Bill Ackman has made significant contributions to GGP during his time on the Board,” Metz said. “We understand his decision to resign to facilitate Pershing Square’s participation in this proposal.” Simon Property spokesman Les Morris declined to comment. Brookfield’s plan gives General Growth equity holders $15 a share, compared with about $9 a share under Simon’s offer. The previous version of Brookfield’s plan called for General Growth to raise as much as $5.8 billion by issuing shares and new debt and through the sale of properties. The new plan “would, if accepted, deliver substantially all of the cash required to fulfill the company’s capital needs in connection with its emergence from bankruptcy and provide unsecured creditors with par plus accrued interest in cash,” General Growth said. Previous Plan Unsecured creditors said in a March 2 bankruptcy-court filing that the previous plan was too risky. Indianapolis-based Simon, in a separate filing, supported the creditors. “While Simon has offered to pay unsecured creditors in full in cash, the consideration to be offered to unsecured creditors under the ‘recapitalization’ is entirely subject to market risk,” David C. Bryan , Eric M. Rosof and Emil A. Kleinhaus, Simon’s attorneys, wrote in the filing. “If General Growth does not raise enough money to pay unsecured creditors, they will be stuck with the equity securities of a highly leveraged company.” David Fick , an analyst with Stifel Nicolaus & Co. in Baltimore, said the new plan is likely an effort to compel Simon to boost its offer. “These guys don’t have the ability to run these assets without the existing GGP management,” he said. “The Pershing Square and Brookfield interests are best aligned with getting a sale done.” General Growth, owner of New York’s South Street Seaport and Boston’s Faneuil Hall, filed the largest real-estate bankruptcy in U.S. history in April after amassing $27 billion in debt making acquisitions. Under its plan with Brookfield, General Growth would split into a company owning shopping malls and another that would own buildings and land with redevelopment possibilities. To contact the reporter on this story: Daniel Taub in Los Angeles at dtaub@bloomberg.net .

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General Growth Bidding War Looms as Simon’s $10 Billion Offer Is Spurned

February 17, 2010

By Daniel Taub (Corrects analyst stock recommendation in ninth paragraph.) Feb. 17 (Bloomberg) — Simon Property Group Inc. ’s offer to buy General Growth Properties Inc. out of bankruptcy for more than $10 billion may start a bidding war for the company, the owner of four out of five of the best-performing U.S. malls. Simon’s proposal would give equity investors about $9 a share. William Ackman’s Pershing Square Capital Management LP, General Growth’s largest shareholder, said in December the stock is worth $24 to $43. That may spur companies including Brookfield Asset Management Inc., which owns General Growth debt, to place a higher bid, said Jim Sullivan , an analyst with real estate research firm Green Street Advisors. “What this bid represents is the start of the game,” said Sullivan, based in Newport Beach, California. “It pretty much comes down to Brookfield vs. Simon, but I wouldn’t rule out other guys trying to get in the game somehow.” General Growth, the owner of New York’s South Street Seaport and Boston’s Faneuil Hall, filed the biggest real-estate bankruptcy in U.S. history in April after amassing $27 billion in debt during an acquisition spree. The Chicago-based company said yesterday that Simon’s offer wasn’t sufficient based on discussions with “other interested parties.” Simon Chief Executive Officer David Simon , who said at the time of General Growth’s bankruptcy filing that he had tried to buy some of the company’s properties, said yesterday his takeover offer is the best option for creditors and shareholders. The bid would repay unsecured creditors in full for about $7 billion. ‘Best Option’ “We are confident it is the best option for all General Growth constituencies and far superior to any other third-party proposal or stand-alone plan that could be completed,” Simon said in a statement yesterday. General Growth shares surged 28 percent yesterday to $12.02, signaling investors expect a higher offer. Brookfield, a Toronto-based real estate investor with more than $90 billion of assets under management, may offer a higher price for General Growth or form a partnership with the mall owner as it emerges from bankruptcy, according to Sullivan and Alexander Goldfarb , an analyst with Sandler O’Neill & Partners LP in New York. “We don’t expect GGP to suddenly dial back its game and believe that management will do what maximizes the value for its shareholders,” Goldfarb, who recommends investors buy Simon Property shares, wrote in a research note yesterday. “Clearly, others, like Brookfield Asset Management (which has sought to acquire a mall platform), could step in to assist GGP with providing an alternative.” ‘Significant Investment’ Denis Couture , senior vice president of corporate and international affairs for Brookfield, wouldn’t say whether his company is planning a takeover offer for General Growth. Brookfield made a “significant investment in General Growth securities or instruments” in 2009, Couture said in a telephone interview yesterday. “We are a meaningful creditor in General Growth but we will not disclose what or how much we own.” Brookfield or another company would need to have both a business that combines well with General Growth and access to enough cash to compete with Simon, said David Pauker , executive managing director at Goldin Associates LLC, who isn’t involved in the General Growth bankruptcy. The $7 billion a bidder would need just to pay off General Growth’s debt is a large amount to raise, he said. ‘Firming’ Values “This is an indication that in one of the weakest areas of real estate — retail — there is an expectation that values may be firming,” Pauker said. Thomas Flexner , global head of real estate at Citigroup Global Markets Inc., said he doesn’t expect a bidding war because of the deal’s size and the complexity of managing malls. “It’s a huge ticket — not many can step up to the plate,” he said in an interview today with Bloomberg Radio. “You might find one or two others that emerge for a portion of GGP, but I think Simon’s is a credible bid.” General Growth plans to provide information on the company, including financial projections and data on its shopping malls, to those interested in making bids, according to its statement yesterday. Materials likely will be sent out by the beginning of next month, with indications of interest due back within four weeks, the company said. “We believe the information we would provide to you as part of this process will enable you to better understand the company, get to a higher valuation, and provide a fully documented offer,” General Growth CEO Adam Metz said in a letter to David Simon that was included in the statement. Pershing Square Ackman’s Pershing Square, based in New York, owns a 25 percent economic interest in General Growth, including 7.5 percent of its shares. In December, Ackman issued a 54-page presentation that put a value on General Growth’s shares two and a half to almost five times the amount Simon yesterday offered. “Using comparable public company valuations, Pershing Square believes GGP is worth between $24 and $43 per share,” Ackman’s hedge fund said in the presentation. Ackman declined to discuss Simon’s offer, citing his position on General Growth’s board that he has held since June. Based on the current valuations for U.S. mall owners and Simon and Brookfield’s “strong strategic and financial motivations,” General Growth is likely valued at $11 to $18 a share, Green Street said in a note to investors last month. Simon would be able to pay $15 a share for General Growth and still be able to convince investors it’s paying a reasonable price, Green Street said. General Growth owns four of the five U.S. malls with the highest sales per square foot, with the other owned by Simon, according to estimates by Green Street. Simon’s offer gives Brookfield, other possible bidders and General Growth itself the opportunity to “step up and let the world know what they want to do,” said Sullivan. “This is a good first bid,” he said. “It’s not a knock- out.” To contact the reporter responsible for this story: Daniel Taub in Los Angeles at dtaub@bloomberg.net .

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Brookfield Fund Picks Up Nearly 3 Mil-Sq.-Ft. Portfolio From JPMorgan

February 14, 2010

A group of funds sponsored by Brookfield Asset Management has acquired a 16-property, 2.9-million-square-foot office portfolio from JPMorgan Chase. Brookfield has now acquired more than 100 properties totaling about 12 million square feet over the last…

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Brookfield Real Estate Services Fund Announces Special Year-End D…

December 18, 2009

Company: Brookfield Real Estate Services Fund Trust Unit (BRE.UN) Brookfield Real Estate Services Fund (the “Fund”) (TSX: BRE.UN) announced today a special cash distribution for 2009 of $0.04 per unit

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Saturday Interview: Brookfield’s Ric Clark

December 5, 2009

as CEO. Since then, his mandate has expanded. In addition to being named chief executive of the global real estate group at BPO, Brookfield Asset Management also announced in August that Mr. Clark would be one of the managers overseeing its new

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Brookfield Raises Colombia Infrastructure Fund

November 9, 2009

Torontobased Brookfield Asset Management has achieved a first closing of its Colombia infrastructure fund with commitments of 320 million

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Brookfield Asset Management Announces 2009 Third Quarter Results

November 6, 2009

TORONTO, ONTARIO–(Marketwire – Nov. 6, 2009) – Brookfield Asset Management Inc. (TSX:BAM.A)(NYSE:BAM)(EURONEXT:BAMA) – Investors, analysts and other interested parties can access Brookfield Asset Management’s 2009 Q3 Results as well as the Shareholders’ Letter and Supplemental Information on Brookfield’s web site under the Investor Centre/Financial Reports section at www.brookfield.com. The 2009 Q3 Results conference call can be accessed via webcast on November 6, 2009 at 11 a.m. Eastern Time at www.brookfield.com or via teleconference at 1-800-319-4610 toll free in North America. For overseas calls please dial 1-604-638-5340, at approximately 10:50 a.m. Eastern Time. The teleconference taped rebroadcast can be accessed at 1-800-319-6413 or 604-638-9010 (Password 2811).

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Brookfield results slip on residential decline

October 29, 2009

NEW YORK – Real estate developer Brookfield Properties Corp., owner of high-profile properties like the World Financial Center in New York and Bank of America Plaza in Los Angeles, posted a third-quarter profit dip

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Brookfield results slip on residential decline

October 29, 2009

NEW YORK – Real estate developer Brookfield Properties Corp., owner of high-profile properties like the World Financial Center in New York and Bank of America Plaza in Los Angeles, posted a third-quarter profit dip

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Brookfield results slip on residential decline

October 29, 2009

NEW YORK – Real estate developer Brookfield Properties Corp., owner of high-profile properties like the World Financial Center in New York and Bank of America Plaza in Los Angeles, posted a third-quarter profit dip

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Brookfield results slip on residential decline

October 29, 2009

NEW YORK – Real estate developer Brookfield Properties Corp., owner of high-profile properties like the World Financial Center in New York and Bank of America Plaza in Los Angeles, posted a third-quarter profit dip

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Video: More Perspective – GE 3Q Earnings Disappoint

October 16, 2009

An In-Depth Look – GE…What’s Next?, Featuring Further Analysis and Discussion with Joel Livingston of Brookfield Investment Management (Bloomberg News)

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UPDATE 1-Two more REITs file for IPOs

August 28, 2009

* Brookfield Realty seeks to raise up to $500 mln * Marathon Real Estate trust seeks up to $300 mln NEW YORK, Aug 28 (Reuters) – Two real estate investment trusts filed for initial public offerings on Friday, bringing to eight the number

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Brookfield Launches $4 Billion Real Estate Turnaround Consortium

August 15, 2009

Asset Management and Brookfield Properties Corp. have formed a $4 billion investor consortium dedicated to investing in underperforming real estate. The consortium will invest in equity and debt in undervalued real estate companies or real estate

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Brookfield Raises $4 Billion for Distressed Property (Update2) (Bloomberg)

August 12, 2009

Brookfield Properties registered to sell $450 million of shares to the public and the same amount to its parent company, which owns a 51 percent voting stake in Brookfield Properties.

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