CARLSBAD — The Shoppes at Carlsbad is getting a new owner.
New York-based Rouse Properties announced on Feb. 25 it will be bought out by an affiliate of Toronto-based Brookfield Asset Management for approximately $2.8 billion.
The Shoppes at Carlsbad was bought by Rouse in November from the Australian-based Westfield Corp. Once in the hands of Rouse, the mall underwent a name change from Westfield Carlsbad to The Shoppes at Carlsbad.
Brookfield, meanwhile, bought Rouse in an all-cash purchase at $18.25 per share, which is $1.25 more than Brookfield initially proposed in January.
“The Rouse team has built a great company with a strong platform and differentiated assets and we are pleased that Brookfield recognizes the value we have created in becoming a leader in our sector,” said David Kruth, chairman of the Special Committee of the Board of Directors of Rouse, in a press release. “Since forming the Special Committee … and with the assistance of our financial and legal advisors, we have focused on evaluating options available to maximize value for Rouse and its shareholders. After careful consideration, the Special Committee determined that Brookfield’s increased proposal provides shareholders with compelling value as well as a high degree of execution certainty, further validating the strength of the platform that Rouse has built.”
The Special Committee of the Board of Directors of Rouse unanimously approved the merger agreement, according to the release. Completion of the transaction is expected to occur during the third quarter of 2016. It is contingent upon customary closing conditions, including the approval of the holders of a majority of the outstanding shares of Rouse, and a majority of the outstanding shares of Rouse not currently held by BPY and its affiliates.
This is the newest turn for the decades-old mall, which underwent a $100 million overhaul in 2014 when Westfield added a workout facility, movie theater and restaurants.
However, Westfield initially pledged a $300 million renovation of the building, but about one year after adding the aforementioned amenities, sold its stake to Rouse.
Westfield was also vocal and provided financial support to a grassroots effort to defeat the controversial Measure A on Feb. 23. The measure would have allowed Caruso Affiliated, a Los Angeles-based commercial development firm, to construct a luxury retail center on the south shore of Agua Hedionda Lagoon and north of Cannon Road.
Steve Puterski covers Carlsbad and Vista. For tips or story ideas, contact him at firstname.lastname@example.org and follow him on Twitter @StevePuterski.