Brookfield Asset Management’s $15 billion property fund is ready to roll.
The firm has finished raising money for the fund, which is the largest ever for the company and the second largest in private real estate, just behind Blackstone Group’s $15.8 billion fund that closed in 2015, according to the Wall Street Journal. Blackstone is almost finished closing a $20 billion fund this year as well.
Brookfield has already made 10 investments using more than $5 billion from the fund, including its purchase of 666 Fifth Avenue from the Kushners and its privatization of Forest City Realty Trust. The fund’s massive size gives Brookfield a lot of clout and will also compel it to focus on large deals, which can be challenging.
The firm started fundraising last year, and its initial goal was $10 billion. It plans to focus on high-quality real estate and avoid properties that can take a long time to generate cash flow, such as development sites. Last year, Brookfield took on several development and redevelopment projects across New York City.
Brookfield told the Journal that more than 150 investors committed to the new fund, ranging from endowments to foundations to sovereign wealth funds. [WSJ] – Eddie Small