Traded as NYSE: TRZ Founded 1923 | Headquarters Chicago | |
Type real estate investment trust Parent organizations Brookfield Office Properties, Blackstone Real Estate Advisors LP Subsidiaries 1114 TrizecHahn-Swig, L.L.C. | ||
Trizec Properties, Inc. (NYSE: TRZ), previously known as TrizecHahn Corporation (TSE and NYSE: TZH), was a real estate investment trust (REIT) company headquartered in Chicago, Illinois. It was historically a Canadian company. The name is derived from the three groups (Tri) that formed a one-time related company Trizec Properties Ltd to develop Place Ville Marie in Montreal. Developer William Zeckendorf (Z) initially financed the project with capital provided by two UK insurance companies, Eagle Star (E) and Covent Gardens (C), which formed the word Trizec.
Contents
Prior to the 2006 acquisition by Brookfield Properties, the owner was Peter Munk, who acquired the company through a highly-publicized reorganization in 1994.
History
The company was founded in 1923.
In the 1970s the Toronto branch of the Bronfman family acquired a 50.1% controlling interest in Trizec through their holding company, Edper Investments. In the 1980s Trizec acquired The Hahn Company and changed its name to Trizec Hahn. In 1984 TrizecHahn acquired a controlling interest in Toronto-based property developer Bramalea Ltd.. After acquiring some $5 billion worth of debt to finance rapid expansion during the 1980s property boom, Bramalea collapsed in the early 1990s, and in 1995 its US subsidiary went bankrupt in the largest bankruptcy of a US house developer. With restructuring of Trizec during this time, Edper's equity was reduced to a nominal amount.
By early 2000 80% of Trizec Hahn's revenues originated from the United States. For that reason, the company moved its headquarters to Chicago and sold all holdings it held in Canada. At a later point its name changed back to Trizec.
In 1997 it acquired the Sears Tower (now the Willis Tower) in Chicago for $70 million with payment of an additional $40 million for a garage next door.
In 2001 it sold some noncore assets for $417 million, with $238 million remaining after it made payments on the debt.
By 2002 the company was still selling Canadian assets, and it also was selling European assets. Its new focus was American high rise, urban office towers. In 2002 the company received permission to convert to an REIT. Trizec Properties Inc. was to be traded on the New York Stock Exchange and Trizec Canada was to trade on the Toronto Stock Exchange.
In 2006 Brookfield Properties and Blackstone Group acquired the company. The payment price was $4.8 billion and the new owners assumed debts of $4.1 billion.
Corporate affairs
When it was Canada-based, the headquarters in the early 1970s were in Place Ville Marie in Montreal. After a first move to Calgary in 1976 by then company President Harold Milavsky, [1] the headquarters were moved again to Toronto in 1995, where the headquarters were in the BCE Place.
The company at one time had its headquarters at Suite 4600 of the Sears Tower in the Chicago Loop area of Chicago. It later moved to the Near West Side.