 | |
| Company type | Real estate investment trust |
|---|---|
| Founded | 1960; 65 years ago (1960) |
| Defunct | October 6, 2006; 18 years ago (2006-10-06) |
| Fate | Acquired byBrookfield Properties andThe Blackstone Group |
| Headquarters | Chicago,Illinois |
| Website | http://trz.com/ |
Trizec Properties, Inc., previously known asTrizecHahn Corporation, was areal estate investment trust headquartered inChicago,Illinois. It was originally a Canadian company.[1] The name is derived from the initials of the three groups (Tri) that formed Trizec Properties Ltd: Zeckendorf, Eagle Star, and Covent Gardens.
In 1994, it was acquired byPeter Munk and in October 2006, it was acquired byBrookfield Properties andThe Blackstone Group.
Trizec was founded in 1960 byWilliam Zeckendorf with British associates recapitalize thePlace Ville Marie development inMontreal.[2]
In the 1970s, the Toronto branch of theBronfman family acquired a 50.1% controlling interest in Trizec through its holding company,Edper Investments. The Bronfmans were also owners of Carena Properties, successor to the Canadian Arena Company. In the 1980s, Trizec acquiredThe Hahn Company. In 1984, Trizec acquired a controlling interest in Toronto-based property developer Bramalea Ltd. After adding $5 billion in debt to finance rapid expansion during the 1980s property boom, Bramalea collapsed in the early 1990s, and in 1995, its U.S. subsidiary went bankrupt in the largest bankruptcy of a U.S. house developer. With restructuring of Trizec, Edper's equity was reduced to a nominal amount.
In 1994, Trizec Corporation was acquired byPeter Munk's Horsham Corporation.[3]
It moved its headquarters from Calgary to Toronto. Horsham Corporation and Trizec Corporation were amalgamated in 1996 to form TrizecHahn Corporation.[4]
In 1997, it acquired a controlling interest in the Sears Tower (now theWillis Tower) in Chicago for $70 million with payment of an additional $40 million for a garage next door.[5] It also acquired a portfolio of assets fromThe JBG Companies for $560 million.[6][7]
In November 1998, the company sold a portfolio ofshopping malls, includingWestfield Santa Anita toWestfield Group for $1.4 billion.[8]
In 1999, the company acquired1 New York Plaza for $390 million fromChase Manhattan Bank.[9]
By early 2000, 80% of TrizecHahn's revenues was from the United States and the company moved its headquarters to Chicago and sold all holdings it held in Canada, changing its name to Trizec.[10]
In 2001, it sold noncore assets for $417 million.[1]
In April 2002, the company received permission to convert to a publicreal estate investment trust.[11]
In November 2002, after theSeptember 11 attacks, the company wrote down two-thirds of the $70 million investment it made in 1997 to gain control of the Sears Tower.[12]
In February 2004, the company sold its interest inHollywood & Highland toCIM Group for $200 million.[13]
In May 2006, the company acquired 13 office properties inSouthern California from Arden Realty for $1.63 billion.[14][15]
In October 2006,Brookfield Properties andThe Blackstone Group acquired the company for $8.9 billion.[16]
When it was Canada-based, the headquarters in the early 1970s were inPlace Ville Marie inMontreal, Quebec. After a first move toCalgary, Alberta in 1976 by then company President Harold Milavsky,[17] the headquarters were moved again toToronto, Ontario[5] in 1995, where the headquarters were in theBCE Place.[18] In 2004, the company was headquartered at Suite 4600 of theWillis Tower in theChicago Loop.[19] It later moved to theNear West Side.
