Brookfield Properties Corp. (BPO), also known as Brookfield Office Properties, and Brookfield Homes Corp. (BHS) announced Tuesday they have joined forces to create the sixth largest residential platform in North America. The new firm, Brookfield Residential, will be the combined product of Brookfield Office's land and housing division (BPO Residential) and Brookfield Homes. Brookfield Residential will retain an equity value of $1 billion and hold $2.5 billion worth of assets. Brookfield Office will receive C$480 million ($473.9 million USD) for contributing BPO Residential to the deal. As well as 51.5 million outstanding common shares of Brookfield Residential stock valued at $515 million. Brookfield Homes will merge with a subsidiary of Brookfield Residential, and each of its outstanding shares will be converted into 0.8 common shares of the newly formed firm. "We are pleased to be bringing a strong and diversified residential land and housing company to existing and potential shareholders," said Ric Clark, President and Chief Executive Officer of Brookfield Office Properties, "and at the same time creating a world?class, pure?play global office property company at Brookfield Office Properties.” A special committee of independent directors appointed by Brookfield Homes' Board of Directors negotiated the transaction. They said the move was a strategic opportunity to enhance company value and offer greater financial flexibility from the combined cash flows. Brookfield Residential will also have a stronger capital base than either firm separately. Brookfield Office Properties is a commercial real estate corporation that owns and manages a portfolio of 108 office properties totaling 77 million sq. ft. in the U.S., Canada and Australia. Brookfield Homes is a land developer and homebuilder. Its portfolio consists of more than 26,000 lots in California and Washington D.C. Write to Christine Ricciardi. Disclosure: The author holds no relevant investments.