Brookfield Stock: Double Strike in the Real Estate Market - Ad-hoc-news.de
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Two billion-dollar deals in a single day - Brookfield Asset Management once again demonstrates how aggressively the Canadian asset manager is acquiring in the US real estate market. First the partnership with Healthpeak Properties, then the acquisition of LXP Industrial Trust. Both transactions together involve a volume in the high single-digit billions. Healthpeak Properties and Brookfield are bundling a portfolio of outpatient healthcare properties into a joint vehicle with a volume of 2.1 billion dollars. Healthpeak contributes 86 properties with approximately 5.6 million square feet of space and remains the majority owner with 51 percent, while Brookfield takes over the remaining 49 percent. For its share, Healthpeak will receive approximately 1.025 billion dollars gross, at a valuation of about 380 dollars per square foot. The portfolio is spread across eleven US states, is 95 percent leased, and has an average remaining lease term of six years. The exit option is noteworthy: Healthpeak secures a right of repurchase that takes effect from the seventh year. The price for this must guarantee Brookfield an annual net return of 6.5 percent - a structure that assures the Canadian investor a kind of minimum return, regardless of how the property value develops by then. In parallel, Brookfield, together with the Canadian pension fund CPP Investments, is acquiring LXP...
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