Toronto-based Brookfield Asset Management has completed the purchase of a US property portfolio from JPMorgan Chase in a deal which will see the global financial services firm lease back 60 percent of the properties.
The deal was completed by the Brookfield Real Estate Opportunity Fund, which invests and manages two funds with $1.8 billion of assets comprising approximately 16 million square feet of real estate.
Brookfield did not disclose the purchase price for the assets in its official announcement on the deal, however sources cited by The Wall Street Journal said it paid in the region of $200 million.
The investment means Brookfield has now purchased more than 100 properties from JPMorgan Chase, totalling about 12 million square feet of space, over the last four years. The portfolio includes assets in Dallas, Tampa and Columbus that are 100 percent leased to JPMorgan Chase. It also includes two assets, in Houston and Whippany, which Brookfield described as “meaningful value –add opportunities”.
Brookfield Asset Management has more than $90 billion of real estate, renewable power and infrastructure assets under management.
The firm made the headlines last year when it launched its $5 billion Real Estate Turnaround Consortium, corralling a number of large name investors, reportedly including China’s CIC and Australia’s Future Fund.