Brookfield is investing in a $700m (€605m) US logistics portfolio by way of a joint venture with Longpoint Realty Partners.
Brookfield, through its real estate secondaries business, has partnered with the Boston-based real estate investment firm to recapitalise the portfolio of 31 assets that was held in one of Longpoint’s closed-end funds.
Longpoint said it will maintain an interest in the portfolio and continue to manage the day-to-day operations of the portfolio which is currently 97% leased.
The portfolio comprises assets located in markets including New Jersey, DC, Dallas, South Florida, and Boston.
Dwight Angelini, a managing partner at Longpoint Partners, said: “In 2015, we created a specialised private equity firm devoted to acquiring and transforming logistics real estate in infill US markets.
“The 31 properties in this joint venture are a direct result of that vision and we are excited to partner with Brookfield Real Estate Secondaries to continue to operate and invest in these high performing assets.”
Marcus Day, managing director at Brookfield’s real estate secondaries business, said: “We are excited to partner with Longpoint on this opportunity to acquire a high-quality logistics portfolio in some of the strongest industrial markets in the country.”
Demographic shifts, technological advances, and supply chain disruptions are creating significant long-term value creation opportunities for well-located real estate assets, Day said.
“We are seeing increasing demand for secondary capital solutions that give GPs and LPs additional runway to execute longer-term business plans, allowing them to participate in future upside.
“This fund recapitalisation with Longpoint highlights the win-win nature of GP-led secondaries for both LPs and GPs,” Day said.
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