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updated: 11/1/2013 9:33 AM

Brookfield boosts General Growth stake for $1.4B

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Associated Press

Commercial real estate company Brookfield Property Partners LP is increasing its stake in Chicago-based General Growth Properties Inc. by paying $1.4 billion for some additional shares and warrants.

Brookfield CEO Ric Clark said in a statement on Friday that the deal allows the company "to increase its exposure to one of the highest quality shopping center portfolios in the world" at an appealing price. General Growth's portfolio includes 123 U.S. malls.

Brookfield will have a 32 percent interest in General Growth if all the outstanding warrants are exercised.

It plans to fund the transaction by issuing $435 million of its units to Investment Corp. of Dubai and other institutional investors and $995 million of redeemable-exchangeable units of a Brookfield Property subsidiary to Brookfield Asset Management Inc.

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