Newspaper article The Canadian Press

Brookfield Asset Management Launches Industrial Property Joint Venture in U.S.: Brookfield Forms U.S. Real Estate Venture

Newspaper article The Canadian Press

Brookfield Asset Management Launches Industrial Property Joint Venture in U.S.: Brookfield Forms U.S. Real Estate Venture

Article excerpt

TORONTO - Brookfield Asset Management (TSX:BAM.A) is teaming up with a Dallas-based real estate firm in a joint venture focused on U.S. warehouses and banking on a recent turnaround in the country's manufacturing sector.

The Toronto-based asset manager said Wednesday it is investing US$160 million in a $400-million joint venture with Hillwood, owned by real estate developer Ross Perot Jr., son of the former U.S. presidential candidate.

The joint venture, which will target distribution warehouses in coastal cities and major mid-American centres, comes amid positive data that the U.S. manufacturing sector is picking up steam as the economy improves.

An increase in global trade and online shopping are also among factors making this an excellent time for the joint venture to begin scooping up industrial real estate, said David Arthur, managing partner at Brookfield Asset Management.

"There's demand for these warehouses that can break the goods down from a bulk or large scale collection into smaller distribution points, the end user," he said.

Perot's Hillwood will be responsible for finding investments.

The companies have worked in the past on specific property investments, but the new venture comes after a year of talks between Hillwood and Brookfield.

It plans to spend up to $1 billion in the first three years, with part of the funding coming from debt.

The pair have already committed to their first purchase under the joint venture -- a distribution warehouse in California, for an undisclosed price in a deal expected to close in next month. …

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