Brookfield Homes considers combination with Carma Developers, part of Brookfield Properties

Brookfield Homes in merger talks with Carma

FAIRFAX, Va. — Brookfield Homes Corp. said Friday it’s discussing a possible merger with Carma Developers LP, the North American residential and housing division of Brookfield Properties Corp.

The homebuilder said the combination would increase the value of both companies by creating a diversified North American residential land and housing company. The company didn’t speculate on the size of the deal.

Brookfield Properties said in a statement Friday that the sale of Carma would help reposition it as an office real estate investment trust. The New York company plans to change its name, effective immediately, to Brookfield Office Properties.

The REIT also said it is buying an interest in 16 Australian offices for $1.4 billion from Brookfield Asset Management Inc. The properties total value is estimated at $3.4 billion.

Brookfield Asset Management owns 82 percent of Brookfield Homes and 51 percent of Brookfield Properties. It supports the merger of Brookfield Homes and Carma.

A committee of independent directors of Brookfield Homes is considering the deal.

Any merger would be subject to the negotiation of a definitive merger agreement, necessary regulatory and shareholder approvals and other conditions.

Shares of Brookfield Homes rose 27 cents, or 3.7 percent, to $7.60 in late morning trading, while the stock of Brookfield Properties rose 54 cents, or 3.5 percent, to $16.09.