Brookfield Closes Transition of Nontraded REIT from Oaktree
November 4, 2021 | James Sprow | Blue Vault
Brookfield Asset Management Inc. finalized its assumption of the advisory role of Oaktree Capital Management LP unit Oaktree Real Estate Income Trust Inc., which has been rebranded as Brookfield Real Estate Income Trust Inc.
The completion of the transition formally establishes the new nontraded real estate investment trust with a gross asset value of approximately $1 billion, including three investment properties contributed by Brookfield.
Brookfield Oaktree Wealth Solutions, a wealth management platform, will distribute the new REIT. The REIT’s investment strategy will stay largely the same but will include exposure to certain markets outside of the U.S. where Brookfield has existing investment portfolios and operating capabilities.
Oaktree will continue to manage certain of the new REIT’s assets and its liquid securities portfolio under sub-advisory agreements. The REIT will be led by Manish Desai as president and COO and Dana Petitto as CFO. Desai was Oaktree Real Estate’s former president, while Petitto is managing director of finance in Brookfield’s real estate group.
The REIT purchased the multifamily asset at 1110 Key Federal Hill in Baltimore for approximately $75 million during the third quarter and is seeking additional near-term acquisitions across multifamily, logistics and other property sectors.
Source: S&P Global Market Intelligence
