Capital One Bank announced provided a $209.5 million, five-year term loan to Brookfield Strategic Real Estate Partners (BSREP) to finance the acquisition of 17 multifamily properties.
BSREP is managed by Brookfield Asset Management, one of the world’s largest owners, operators and investors in office, industrial and multifamily properties.
The properties are located across Texas, South Carolina, North Carolina and Virginia, and this acquisition will add almost 4,300 units to BSREP’s existing portfolio, which is focused on commercial property, with an emphasis on North America, Europe, Brazil and Australia.
“Brookfield is an industry leader, and its wide-ranging expertise and experience provide the company with a competitive advantage in the commercial real estate space,” said Michael Sleece, senior vice president, REIT Finance Group, Capital One Bank.
“We look forward to building on this longstanding relationship as we support Brookfield’s future growth.”
Brookfield Asset Management Inc., Canada’s biggest manager of alternative assets raised $4.4 billion to buy real estate around the world using its Strategic Real Estate Partners fund to make “opportunistic” investments in property.
The Toronto-based company’s Brookfield Property Partners LP (BPY-U) unit put about $1.3 billion to the fund as its largest investor.
The fund buys assets mainly in North America, Europe, Brazil and Australia. The fund already has committed about $1.1 billion to investments in Thakral Holdings Group, an Australian office and hotel owner; Verde Realty, a U.S. industrial real estate company; and EZW Gazeley Ltd., an owner of European logistics facilities.
The property fund is part of about $14 billion of capital pledges to Brookfield funds in the past year. They include the $6.2 billion Brookfield Infrastructure Fund, the $2.1 billion Brookfield Investment Management fund, and funds to buy office buildings in Los Angeles and assets such as timber.
Brookfield Asset has more than $175 billion of assets under management, including hydroelectric dams and infrastructure.
Its Bermuda-based Brookfield Property unit has stakes in more than 300 office and retail properties with about 250 million square feet (23 million square meters), plus apartment, industrial and development holdings.
Brookfield Property’s holdings include Brookfield Office Properties Inc., owner of the Brookfield Place office complex in lower Manhattan.
The company also holds about 22 percent of General Growth Properties Inc. (GGP), the No. 2 U.S. shopping mall landlord.