Brookfield Asset Management announced this week that it had formed a joint venture with Hillwood to acquire, develop and manage industrial property, principally large warehouses, across the United States. With an equity commitment of $400 million, the partnership is expected to deploy up to $1 billion within the first three years.
"The partnership between Brookfield and Hillwood is not only the right fit, it’s happening at the right time," said Ross Perot, Jr., Chairman, Hillwood. "Industrial development slowed during the downturn due to a lack of equity and debt. Given the liquidity and resources supporting our investment, our joint venture is well-positioned to benefit from renewed demand for industrial space which will increase as the economy continues to show signs of improvement."
Overall, the fund is targeting returns in the 13 percent to 16 percent range reported the National Real Estate Investor. The average investment size will be between $20 million and $60 million. And David Arthur, Managing Partner at Brookfield Asset Management, expects the fund will hold assets three to five years after repositioning them.
"As long-term, value-oriented real estate investors, we believe this is an excellent time to selectively build a portfolio of high-quality industrial properties, and we look forward to expanding our relationship with Hillwood," said Arthur. "This initiative expands the scope of our real estate platform in an exciting asset class, strengthening our global property operations in line with the expected launch later this year of our flagship property vehicle, Brookfield Property Partners."
For more news and information visit Blumberg Capital Partners.
No comments:
Post a Comment