Key facts
- Brookfield Asset Management acquired a 49% stake in a $2.1 billion medical office portfolio.
- The joint venture is with Healthpeak Properties, a healthcare REIT.
- Healthpeak is contributing 86 properties totaling 5.6 million square feet.
- Healthpeak will retain a 51% controlling interest and continue to manage the portfolio.
- Brookfield contributed over $1 billion to the joint venture.
- Healthpeak has a call option to repurchase Brookfield's stake after seven years.
Brookfield Asset Management has entered into a significant joint venture, acquiring a 49% stake in a medical office portfolio valued at $2.1 billion. The deal involves Brookfield contributing over $1 billion to partner with Healthpeak Properties, a Denver-based healthcare real estate investment trust (REIT).
Healthpeak Properties is contributing an existing portfolio of 86 medical office and lab properties, which are 95% leased and span 5.6 million square feet across 11 states. While Healthpeak retains a 51% controlling interest and will continue to manage and lease the properties, Brookfield's investment provides crucial long-term capital. Healthpeak also holds a call option to repurchase Brookfield's stake after seven years at a 6.5% net annual return rate.
This transaction aligns with Healthpeak's strategy to focus on medical and lab space, following its March spin-off of senior housing assets. Healthpeak CEO Scott Brinker stated the deal advances capital allocation priorities and captures favorable demand for outpatient care. Brookfield's Managing Partner of Real Estate, Alexander Elawadi, highlighted Brookfield's position to offer innovative capital solutions for partners seeking access to quality real estate opportunities.
In a separate but related transaction announced the same day, Brookfield, alongside the Canada Pension Plan Investment Board, is set to acquire LXP Industrial Trust in a $5.2 billion deal, taking the industrial REIT private.