In June 2006, Brookfield Properties Corp. and Blackstone Group snapped up Trizec Properties Inc. and Trizec Canada Inc. in a deal valued at US$8.9-billion. It bagged the duo interest in 61 office properties in seven major U. S markets, nearly doubling Brookfield’s footprint to 84 million square feet, almost eight square kilometres of some of the best office space in the world.
But the sweet deal also left a lingering aftertaste: US$1.6-billion worth of debt that will come come due in 2011. Now even Canada’s largest property developer can’t fully escape the rising tide of troubled commercial real estate debt in the United States.
Read Karen Mazurkewich’s full article “Office sector debt looms as threat to U.S. recovery” in the Financial Post (December 7, 2009).