Dallas-based Hillwood and Toronto’s Brookfield Asset Management are teaming up to buy, develop and manage industrial properties across the United States. Backed by an equity commitment of $400 million, the partners hope to place up to $1 billion in the next three years.
“The partnership between Brookfield and Hillwood is not only the right fit, it’s happening at the right time,” said Ross Perot, Jr., chairman of Hillwood, in a statement. “Industrial development slowed during the downturn due to a lack of equity and debt. 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.”
David Arthur, managing partner of Brookfield Asset Management, said the initiative will expand the scope of the firm’s real estate platform, strengthen its global property operations, and is in line with the expected launch later this year of Brookfield Property Partners. “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,” he said.
Here is additional information, taken from a joint press release:
Brookfield Asset Management is a global alternative asset manager focused on property, renewable power, infrastructure and private equity, with approximately $150 billion of assets under management, which includes more than $83 billion of property assets under management in North and South America, Europe and Australia. In addition, the company provides clients with an extensive array of real estate advisory, property and investment services. Brookfield is publicly listed on the NYSE, TSX and Euronext Amsterdam under the symbol BAM, BAM.A and BAMA, respectively.
Hillwood, a Perot company, is ranked as one of the top commercial real estate investors and developers in the country and the top residential developer in Dallas-Fort Worth. The company’s developments currently house facilities for 58 companies listed on the Fortune 500, Global 500 or Forbes List of Top Private firms. Hillwood is best known for its Alliance brand, which includes the 17,000-acre AllianceTexas, 4,474-acre AllianceFlorida at Cecil Commerce Center, and 2,000-acre AllianceCalifornia.