Brookfield Starts $4B Investor Consortium

TORONTO-Brookfield Asset Management and Brookfield Properties Corp. have created a $4 billion investor consortium that will focus on under-performing real estate companies or portfolios. The group hopes to create shareholder value by “including financial and operational restructuring, strategic direction or sponsorship, portfolio repositioning, redevelopment or other active asset management,” according to a company release.

“This is the next step in our global property growth plan, as it combines our strength as one of the world’s leading real estate operating companies with our extensive expertise in corporate restructurings and strategic acquisitions,” says Ric Clark, CEO of Brookfield Properties.

The investments made will focus on corporate property restructuings with at least a $500 million equity commitment. The consortium will hone in on North America, Europe and Australiasia.

“We believe that the current distressed economic environment and the dislocation both in real estate values and financing availability creates a compelling opportunity to pursue transactions on a global basis where we can utilize our restructuring and operating capabilities. We look forward to creating value for all stakeholders,” says Cyrus Madon, senior managing partner, Restructurings for Brookfield.

Brookfield Asset Management and Brookfield Properties Corp. are not the only two entities involved in this move. Several other, unnamed institutional real estate investors have contributed between $300 million and $1 billion. Brookfield contributed $1 billion.