Brookfield Asset Management, Elion Partners Form $1B Industrial Development Partnership
TORONTO AND MIAMI — Brookfield Asset Management (NYSE: BAM) and Elion Partners have announced a $1 billion strategic partnership. The venture will expand Toronto-based Brookfield’s logistics portfolio across core infill markets in the U.S.
Through the investment, Brookfield recapitalized Elion Logistics Park 55, a master-planned industrial park in Wilmington, Illinois, approximately 60 miles southwest of downtown Chicago. Located adjacent to the BNSF railway, the property features five Class A, fully leased industrial buildings totaling 4 million square feet. The site offers the potential to develop up to 15 million square feet of additional industrial space.
Park Madison Partners acted as advisor for the recapitalization.
Brookfield has also committed $80 million to Elion’s latest affiliated value-add fund — Elion Real Estate Fund V — which held its final closing last month, achieving a capitalization of $500 million. A majority of the fund’s portfolio was pre-specified prior to Brookfield’s investment and includes 3.2 million square feet of logistics properties across infill coastal markets in the U.S.
“Industrial logistics real estate continues to experience positive momentum and now is the logical time to seek long-term capital,” says Juan DeAngulo, managing partner at Miami-based Elion. “This partnership structure and Brookfield’s support will enable Elion to fulfill its long-term development plans for Elion Logistics Park 55.”
Brookfield Asset Management manages a portfolio worth over $600 billion across real estate, infrastructure, renewable power, private equity and credit assets. The company’s stock price closed at $55.61 per share on Wednesday, Sept. 22, up from $32.48 one year ago.
Elion Partners is a private equity real estate investment firm with a focus on the industrial sector. The minority-owned company manages more then $2 billion in real estate assets through closed-end funds and permanent capital investment vehicles.