What happened

Shares of Brookfield Property Partners (BPY) jumped 17.7% in January, according to data provided by S&P Global Market Intelligence, after parent Brookfield Asset Management (BN -0.34%) kicked off the new year by offering to buy the real estate master limited partnership for $16.50 per unit.

So what

Brookfield Property owns shopping malls and office buildings, two areas that were hit hard by the COVID-19 pandemic. The MLP resorted to partnering with shopping mall peer Simon Property Group (SPG 0.09%) to buy troubled retailers out of bankruptcy to keep their stores open and ensure its venues weren't pockmarked with vacancies.

Empty shopping mall

Image source: Getty Images.

Brookfield Asset Management thinks the coronavirus outbreak led the market to undervalue the MLP. In December, it said the office space was worth $13.90 per share, while the malls were worth another $12.90 per share, making the full value of Brookfield Property some $26.80 per share, or nearly double what it is buying its offspring for.

BPY Chart

BPY data by YCharts.

Now what

Brookfield Property Partners is considering the offer being made, and it's likely to accept the proposal, as the deal will allow the MLP to continue its progress of shoring up its commercial office space and retail stock portfolio out of the public eye.