(Reuters) - Brookfield Property Partners LP BPY.N is considering options for its office properties in the northeastern United States that include the potential sale of a stake that could value the portfolio at as much as $10 billion, people familiar with the matter said.
The sale, which could attract interest from investment firms and sovereign wealth funds, would allow Brookfield Property to capitalise on the value of its high-end office assets, many of which are in major U.S. cities such as New York and Washington, D.C., the sources said this week.
It would also allow Brookfield Property to pay down a substantial amount of debt, setting the portfolio up for a possible separation into an independent publicly traded real estate investment trust (REIT) down the line, the sources added.
Brookfield Property is still working on carving out the northeastern U.S. office properties from its $66 billion real estate portfolio, which spans the office, retail, multifamily housing and industrial sectors, according to the sources.
The company has not yet launched a process to sell the stake, and no deal is certain, the sources said, asking not to be identified because the deliberations are confidential.
Brookfield Property declined to comment.
Reporting by Carl O'Donnell in New York; Editing by Steve Orlofsky