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Brookfield Closes on $1.3B Light Industrial Portfolio
Brookfield Asset Management recently completed the acquisition of a 14.6 million-square-foot industrial portfolio from funds managed by DRA Advisors. Published reports valued the acquisition through Brookfield’s private real estate fund at $1.3 billion. The portfolio of infill light industrial assets is 96% occupied and caters to hundreds of national, regional and local businesses across 20 high-growth U.S. markets, primarily in the Sunbelt and Midwest.
“We strongly believe in the long-term fundamentals in the logistics space and are excited about the opportunity to purchase this portfolio of light industrial assets that represent mission critical locations for the tenants,” said Andy Smith, head of North American investments for logistics at Brookfield. “Given the increased financing and construction costs over the past several years, particularly in the light industrial space, we believe this transaction represents the opportunity to capitalize on strong supply/demand fundamentals for assets in top markets where Brookfield has existing operating experience.”
Eastdil Secured arranged the deal. Brookfield was able to obtain attractive debt terms for the acquisition via the CMBS market in June. It intends to leverage its experience as a logistics operator to vertically integrate the acquired portfolio within its national team and network of regional offices. The company will also launch a targeted capital improvement program to enhance the sustainability, safety, and efficiency of the assets.
Brookfield’s existing global logistics platform includes 425 properties and a 90-million-square-foot
development pipeline, for a total of 150 million square feet across the U.S., Canada, Europe, Brazil,
Australia, Korea, China, and the Middle East.
- ◦Sale/Acquisition
