News Article | 3/14/2012

Hillwood partners in $1 billion industrial deal

Developer Hillwood said Wednesday that it is teaming up with Brookfield Asset Management to invest in $1 billion in industrial and commercial properties.

The real estate company owned by Dallas businessman Ross Perot Jr. is best known for its big AllianceTexas development north of Fort Worth.

Now Hillwood and its new partner Brookfield are committing $400 million to buy, develop and manage industrial buildings across the country during the next three years.

Hillwood will be in charge of locating the properties.

The company said that the new partnership is one of the largest such ventures since the start of the recession in 2008.

“The partnership between Brookfield and Hillwood is not only the right fit, it’s happening at the right time,” Perot said 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.”

Brookfield is a Toronto-based public real estate company with about $150 billion of assets under management.

The company has previously invested in North Texas real estate.

“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,” David Arthur, Managing Partner at Brookfield Asset Management, said.