DALLAS — Brookfield Asset Management (NYSE: BAM) and Hillwood, a real estate investment and development company owned by Ross Perot Jr., have entered into a joint venture that anticipates a $1 billion deployment within the first 3 years.
“The partnership between Brookfield and Hillwood is not only the right fit, it’s happening at the right time,” said Perot, chairman of Dallas/Fort Worth-based Hillwood.
“Industrial development slowed during the downturn due to a lack to equity and debt,” Perot continued. “Given the liquidity and resources supporting our investment, our joint venture is well-positioned to benefit from renewed demand for industrial space, which will increase as the economy continues to show signs of improvement.”
Currently, the partnership has an equity commitment of $400 million to acquire, develop and manage industrial properties, primarily large warehouses, across the United States. Brookfield Asset Management is responsible for raising capital.
“As long-term, value-oriented real estate investors, we believe this is an excellent time to selectively build a portfolio of high-quality industrial properties, and we look forward to expanding our relationship with Hillwood,” said David Arthur, managing partner at New York City-based Brookfield Asset Management.
“This initiative expands the scope of our real estate platform in an exciting asset class, strengthening our global property operations in line with the expected launch later this year of our flagship property vehicle, Brookfield Property Partners.
Brookfield’s share price closed at $31.92 on March 14, up from $30.93 a year ago.
— Savannah Duncan