Brookfield to Create Private REIT Out of Oaktree-Managed Assets

July 16, 2021 | James Sprow | Blue Vault

Brookfield Asset Management Inc. is looking to establish its own private real estate investment trust, known as Brookfield Real Estate Income Trust Inc., in a bid to increase its scale, Bloomberg Markets reported, citing people familiar with the matter.

The new REIT reportedly will be created by turning over to Brookfield the management of a $478 million portfolio of properties overseen by Oaktree Capital Management LP unit Oaktree Real Estate Income Trust Inc., including residential assets in Atlanta, Denver and Dallas, as well as office buildings in Los Angeles and Arlington, Va.

Brookfield’s interest in three multifamily and office assets worth over $400 million will be contributed to the venture, with plans to expand the portfolio over time. The strategy will stay largely intact but will include some markets outside of the U.S. where Brookfield operates, the sources said.

The transfer of the advisory role to Brookfield could take place during the fourth quarter, and Brookfield-Oaktree Wealth Solutions will distribute the units in the new REIT to individual and high-net-worth investors, the sources said.

Oaktree Real Estate President Manish Desai will continue to lead the company, according to the report.

Sources:  S&P Global Market Intelligence, Bloomberg