Brookfield Asset Management has formed a joint venture with Healthpeak Properties, a Denver-based real estate investment trust (REIT), to acquire a stake in its extensive medical real estate portfolio. The capital partnership, announced on Monday, grants Brookfield and its affiliates a 49 per cent interest in Healthpeak's 86 outpatient medical buildings nationwide, valued at approximately $2.1 billion.
The properties encompass approximately 5.6 million square feet in total and span eleven states, including Kentucky, Indiana, Pennsylvania, Arkansas, Illinois, Minnesota, New Jersey and New York. According to the announcement, the portfolio is currently 95 per cent leased. Newmark served as financial advisor for the transaction, while Kirkland & Ellis acted as legal counsel for Brookfield.
Healthpeak, founded in 1985, owns, operates and develops properties for the healthcare industry, including life sciences laboratories and senior living facilities. According to its website, the REIT has interests in approximately 700 properties nationwide. Scott Brinker, President and CEO of Healthpeak, stated that Brookfield's reputation, scale and long-term investment approach complement Healthpeak's deep sector expertise and leading operating platform. He emphasised that the transaction advances the company's capital allocation priorities and highlights its unique ability to capitalise on the favourable tailwinds driving demand for outpatient care.
Healthpeak will retain a 51 per cent majority interest in the portfolio, thus maintaining ownership and operational control, whilst securing access to new, long-term capital. The REIT received gross proceeds of approximately $1 billion from the deal.
Brookfield's real estate division, led by Ben Brown, has been highly active over the last eighteen months, completing acquisitions worth approximately $32.3 billion and raising $13.2 billion in new capital. One of these acquisitions was recently completed, with Brookfield, together with the Canada Pension Plan Investment Board, acquiring LXP Industrial Trust in a transaction valued at approximately $5.2 billion, as reported by Commercial Observer.
Alexander Elawadi, Managing Partner in Brookfield's real estate group, commented that as real estate companies increasingly seek innovative capital solutions, Brookfield is well-positioned to structure investments that advance partners' strategic goals while offering investors access to differentiated, high-quality real estate opportunities.
