Brookfield close to raising $900m for core-plus US fund

Brookfield Asset Management is close to raising $900m (€820m) for an open-ended core-plus property fund.

The Toronto-based fund manager is expected to reach a first close for Brookfield Premier Real Estate Partners by the end of the month, according to sources familiar the fund.

Ohio Police & Fire Pension Fund confirmed to IPE Real Estate that it is planning to join the capital raise, committing $50m.

The fund is targeting net returns between 9% to 11% and will target gateway markets including San Francisco, Seattle, New York City, Boston and Washington, DC.

It will invest in existing assets across the office, industrial, retail and residential sectors.

Brookfield did not comment.

The commitment from Ohio Police & Fire, recommended by real estate consultant The Townsend Group, represents the first time the pension fund has invested with Brookfield.

It is likely to be the last commitment it makes this year, having planned to commit between $120m and $170m over the 12 months.

It has already committed $50m to Greystar Equity Partners IX, a residential fund, and $50m to Asan Partners Fund I, which is focusing on retail assets.

The $14.2bn pension fund holds $1.55bn of real estate invesmtents, giving it a 10.8% exposure to the asset class, below its target allocation of 12%.

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  • QN-2511

    Asset class: Commodities.
    Asset region: Global.
    Size: $10m.
    Closing date: 2019-02-25.

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