DBRS Comments on Brookfield Property Partners L.P.’s Announcement to Privatize BCOP

DBRS Limited (DBRS) has today noted that Brookfield Property Partners L.P. (BPY) has announced its proposal to Brookfield Canada Office Properties (BCOP or the Trust) to acquire the approximately 16.9% equity interest in BCOP that it or its affiliates do not own (approximately 15.8 million units) for $30.10 cash per unit.

BPY and its affiliates currently have a controlling interest in BCOP through an 83.1% ownership.

In DBRS’s view, BPY’s privatization of BCOP will not change the credit risk profile of the Trust, as DBRS does not expect any material adjustments in BCOP’s business operations or financial policy.

DBRS notes that should BPY be successful in completing the privatization, BCOP will no longer be a reporting issuer. DBRS rates BCOP’s Senior Unsecured Debt at BBB with a Stable trend notwithstanding. As at January 23, 2017, BCOP had no Senior Unsecured Debt outstanding.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Entities in the Real Estate Industry (June 2016), which can be found on our website under Methodologies.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.