Brookfield Property Partners - CEO, Brian Kingston
CEO, Brian Kingston
Source: The Business Journals
  • Real estate company, Brookfield Property Partners (BPY.UN) has issued C$500 million in five-year medium-term notes
  • Proceeds from the company’s offering will go towards recently completed and future green projects
  • Brookfield Property also borrowed approximately $2.35 billion of total debt, at a weighted average coupon of 2.95 per cent
  • The company will use this money to refinance the recently completed One Manhattan West office building in New York
  • Brookfield Property Partners (BPY.UN) is down 2.32 per cent and is currently trading at $15.58 per share

Real estate company Brookfield Property Partners (BPY.UN) has issued C$500 million in five-year medium-term notes.

The company’s notes were issued at a fixed rate of 3.93 per cent. Brookfield Property Partners intends to direct the proceeds of its offering towards its recently completed and future green projects.

The company’s substantial financing efforts have continued, with Brookfield Property Partners borrowing approximately $2.35 billion of total debt. The debt came at a weighted average coupon of 2.95 per cent.

Approximately $1.96 billion of that mortgage debt amount was converted into securities and distributed in the commercial mortgage-backed security (CMBS) market. The remaining amount of approximately $393 million was structured as mezzanine debt.

Brookfield Property Partners plans to use the money to refinance the recently completed One Manhattan West office building in New York. 

The mortgage debt is backed by a senior loan on One Manhattan West office tower. As such, the debt backs one of the largest single-asset, single-borrower CMBS transactions that has been issued this year.

In all, Brookfield Property Partners’ various financings came to an approximate total of $2.85 billion. The company’s Chief Executive Officer, Brian Kingston, commented on the benefits that the company’s recent financings will bring.

“The strong interest in both of these transactions in today’s environment is further evidence of investors’ support of BPY and their belief in the long-term durability of high-quality real estate assets,” he said.

Brookfield Property Partners (BPY.UN) is down 2.32 per cent and is trading at $15.58 per share at 12:22pm EDT.

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