Alliance, Texas developer Hillwood has inked a deal with Canadian firm Brookfield Asset Management to form a joint venture to acquire, develop and manage up to $1 billion in industrial property throughout the United States.
With an equity commitment of $400 million, the partnership is expected to deploy up to $1 billion within the first 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 real estate firm Hillwood in a release. “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.”
Brookfield is a global asset manager focused on property, renewable power, infrastructure and private equity, with about $150 billion of assets under management – with more than $83 billion of property assets under management in North and South America, Europe and Australia. The firm is listed on the NYSE, TSX and Euronext Amsterdam under the symbol BAM, BAM.A and BAMA, respectively.
“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,” said David Arthur, managing partner at Brookfield Asset Management, in a release. “This initiative expands the scope of our real estate platform in an exciting asset class, strengthening our global property operations in line with the expected launch later this year of our flagship property vehicle, Brookfield Property Partners.”