Key Takeaways
- • Brookfield Asset Management is launching its next opportunistic real estate fund in Q2 2017, building momentum from record flagship fund closings in 2016.
- • The predecessor fund, Brookfield Strategic Real Estate Partners II, achieved a $9 billion final close in April 2016, exceeding its $7 billion target and demonstrating strong institutional investor demand.
- • Brookfield's opportunistic real estate fund series has demonstrated consistent growth: BSREP I closed at $4.4 billion in 2013, followed by BSREP II at $9 billion in 2016, signaling expanding LP appetite for the strategy.
- • The fund series targets investments across North America, Europe, Brazil, and Australia, with the opportunistic strategy typically employing leverage exceeding 70%.
- • Brookfield has been actively deploying capital in 2017, having already acquired more than $1 billion in properties across its portfolio.
Summary
Brookfield Asset Management plans to capitalize on institutional investor momentum by launching its next opportunistic real estate fund during Q2 2017, according to a shareholder letter released by the firm. The announcement comes on the heels of record-breaking performance from Brookfield's flagship real estate funds, with management noting the firm remains "active with fundraising, capitalizing on the momentum created by our record flagship fund closings last year."
The firm's track record in opportunistic real estate fundraising demonstrates substantial institutional appetite for the strategy. Brookfield Strategic Real Estate Partners II, the most recent fund in the series, held its final close in April 2016 at $9 billion, surpassing the initial $7 billion target by $2 billion. The original fund in the series, Brookfield Strategic Real Estate Partners I, raised $4.4 billion when it closed in 2013. This progression—from $4.4 billion to $9 billion between successive funds—indicates accelerating LP confidence in Brookfield's opportunistic real estate investment approach.
The BSREP fund series targets real estate opportunities across multiple geographic markets including North America, Europe, Brazil, and Australia. Opportunistic real estate strategies typically employ higher leverage than core or value-add approaches, often exceeding 70%, allowing managers to capture enhanced returns from value creation and market timing. Brookfield's 2017 activity has included acquisitions exceeding $1 billion in property assets, demonstrating the firm's active capital deployment stance in the current market environment.
The firm's track record in opportunistic real estate fundraising demonstrates substantial institutional appetite for the strategy. Brookfield Strategic Real Estate Partners II, the most recent fund in the series, held its final close in April 2016 at $9 billion, surpassing the initial $7 billion target by $2 billion. The original fund in the series, Brookfield Strategic Real Estate Partners I, raised $4.4 billion when it closed in 2013. This progression—from $4.4 billion to $9 billion between successive funds—indicates accelerating LP confidence in Brookfield's opportunistic real estate investment approach.
The BSREP fund series targets real estate opportunities across multiple geographic markets including North America, Europe, Brazil, and Australia. Opportunistic real estate strategies typically employ higher leverage than core or value-add approaches, often exceeding 70%, allowing managers to capture enhanced returns from value creation and market timing. Brookfield's 2017 activity has included acquisitions exceeding $1 billion in property assets, demonstrating the firm's active capital deployment stance in the current market environment.
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