Brookfield Announces Completion of US$15 Billion Real Estate Funding
Brookfield Asset Management Inc. (Brookfield) introduced Brookfield Strategic Real Estate Partners III (BSREP III) today. According to Nasdaq, the private real estate fund has equity of US$15 billion, making it Brookfield's largest private fund in the record.
The investments were brought upon by 'strong investor demand,' enabling the fund to create fundraising of about $10 billion. The number of those who committed to the funding totaled around 150 'limited partners,' with a few pension plans of the public and private kind, financial institutions, endowments, foundations, and sovereign wealth funds diversifying in the mix.
The fund announcement was also boosted by quite a few asset acquisitions from companies in the real estate properties industry. Real Assets cited the efforts of Blackstone to diversify, which led to a portfolio of businesses from Australia to the US. Properties in these countries, as well as those from Canada, Finland, Spain, and Singapore, landed within the companies' portfolios.
Blackstone wasn't without competitors, and Pebblebrook was also busy in 2018, securing the largest deal recorded that year. The investment firm outbid Blackstone and Oxford Properties for the LaSalle Hotels, which it received for US$5.2 billion. Blackstone, however, had been frequently taking public companies in a private scheme as a seemingly preferred way of securing them.
Brookfield also took some companies in a private acquisition. In the US, Brookfield included Forest City Realty and GGP into their portfolio with a combined total of US$25 billion. Currently, the company has its eyes on an Australian firm and is looking to close the deal; if it does, it will be adding $4.5 billion to its considerable haul of assets.
A senior vice-president at the National Association of Real Estate Investment Trusts (NAREIT) Calvin Schnure had said that the mergers and acquisitions had totaled US$75 billion and had been done in the US in 2018. It represents a total larger than that of 2017 and 2016. It is worth noting, however, that any amount between US$70 billion and US$80 billion is the norm for the industry.
Brookfield Property Group CEO Brian Kingston echoed his approval for how the company handled transactions. He said that, while they are grateful for the support from limited partners, he was still chasing after the continued use of their core strengths in the industries of access to large-scale capital, global reach, and operational expense.