Trizec Properties
| Company type | Public (formerly) |
|---|---|
| Industry | Real estate investment trust |
| Founded | 1960 |
| Founder | William Zeckendorf and British collaborators |
| Fate | Acquired by Brookfield Properties and The Blackstone Group in 2006 |
| Headquarters | Chicago , United States |
Key people | Harold Milavsky (former President and CEO), Peter Munk (acquirer in 1994) |
| Products | Real estate investment, property management |
| Parent | Brookfield Properties and The Blackstone Group (from 2006) |
Trizec Properties, Inc., previously known as TrizecHahn Corporation, was a real estate investment trust with its main office in Chicago. Initially, it was established as a Canadian enterprise. The company’s name originates from its three founding entities: Zeckendorf, Eagle Star, and Covent Gardens.
In 1994, Peter Munk acquired the firm, and later in October 2006, ownership transferred to Brookfield Properties alongside The Blackstone Group.
History
Trizec was established in 1960 by William Zeckendorf together with British collaborators to provide new capital for the Place Ville Marie project in Montreal. Over the following decades, the company experienced substantial growth.
During the 1970s, control of the company shifted to the Toronto-based Bronfman family, who secured a 50.1% majority stake through Edper Investments. The Bronfmans also held ownership of Carena Properties. In the 1980s, Trizec expanded by acquiring The Hahn Company. Under the leadership of Chairman and CEO Harold Milavsky, it evolved into one of North America’s leading real estate enterprises, managing prominent shopping centres such as Yorkdale Shopping Centre and Scarborough Town Centre. In 1986, Markham Place was sold to Bramalea (company).
In 1984, Trizec took a controlling interest in Bramalea Ltd., fueling rapid growth with $5 billion in debt amid a booming property market. Bramalea eventually collapsed in the early 1990s; its U.S. division filed for bankruptcy protection in 1995, triggering a restructuring that substantially decreased Edper’s equity position.
Peter Munk’s Horsham Corporation acquired Trizec in 1994 and subsequently relocated its headquarters from Calgary to Toronto. By 1996, Horsham and Trizec merged to create TrizecHahn Corporation.
In 1997, TrizecHahn secured majority ownership of Chicago’s Sears Tower (now Willis Tower) for $110 million and acquired assets from The JBG Companies valued at $560 million. The following year in November 1998, it divested a portfolio of malls including Westfield Santa Anita to Westfield Group for $1.4 billion.
The purchase of 1 New York Plaza occurred in 1999 for $390 million. By 2000, with U.S. revenues accounting for 80% of total income, the firm moved its headquarters to Chicago, sold off Canadian properties, and rebranded itself as Trizec.
In 2001, non-essential assets were sold generating $417 million. By April 2002, the company transitioned into a publicly traded real estate investment trust. After the September 11 attacks, Trizec recorded a two-thirds impairment on its investment in Sears Tower.
February 2004 saw the sale of its stake in Hollywood & Highland for $200 million. In May 2006, Trizec expanded by acquiring thirteen office properties in Southern California from Arden Realty for $1.63 billion.
The firm was ultimately purchased by Brookfield Properties and The Blackstone Group in October 2006 for $8.9 billion.
Headquarters locations
Initially headquartered at Place Ville Marie, Montreal, Quebec during the early 1970s, the company shifted its main office to Calgary, Alberta in 1976 under President Harold Milavsky. In 1995, it moved again to Toronto, Ontario, operating out of BCE Place. By 2004, headquarters relocated to Suite 4600 within Chicago’s Willis Tower (formerly Sears Tower) located in the Chicago Loop, before eventually moving to the Near West Side area.