Brookfield Closes $4B CRE Debt Fund

Image by Bruce Emmerling via Pixabay.com

Brookfield has closed its latest real estate debt fund, Brookfield Real Estate Finance Fund VI, with capital commitments totaling more than $4 billion, exceeding an initial target of $3 billion.

A diverse group of nearly 50 limited partners committed to BREF VI, including public and private pension plans, labor organizations, endowments and foundations, financial institutions and insurance companies. The U.S., Canada, Europe and Asia/Pacific reportedly are all represented among the investors in the fund.

Brookfield itself committed $400 million to the fund, highlighting its longstanding alignment of interests with investors.

READ ALSO: What’s Ahead for Office in 2022

In a prepared statement, Andrea Balkan, the managing partner who oversees the Fund, said that the fundraising effort has gone exceptionally well, and that Brookfield appreciates the strong support it has received from its investors.

BREF VI continues Brookfield’s real estate debt investment strategy, with a focus on lending against high-quality real estate assets in major U.S. metropolitan markets, and selectively in the U.K. and Europe, at valuations that are below long-term intrinsic value. To date, the fund has closed on 15 investments, representing aggregate mezzanine lending commitments exceeding $700 million.

As of press time, a spokesperson had not replied to Commercial Property Executive’s request for additional information.

Large moves and larger ones

In April, the board of Brookfield Property Partners agreed to the acquisition by Brookfield Asset Management Inc. of all of BPY’s limited partnership units for $6.5 billion.

Also in April, an affiliate of Brookfield Property Partners acquired for $630 million a mixed-use campus in Mountain Valley, Calif. The 456,760-square-foot office portion of the project is fully leased by WeWork.