Brookfield targets US$15B for real estate fund despite woes
BNN Bloomberg
Brookfield Asset Management Ltd. is aiming to raise US$15 billion for its fifth flagship real estate fund, less than its previous version, according to people familiar with the matter, as the global property market is roiled by rising borrowing costs.
Brookfield, one of the world’s largest owners of prime office properties, started raising money earlier this year for the new vehicle just months after closing its fourth fund at US$17 billion. A spokesperson for the Toronto-based asset manager declined to comment.
The firm is seeing attractive value entry points, Brookfield Asset President Connor Teskey told shareholders last month, adding that investors “believe that this could be a tremendous vintage for us, and therefore, there is lots of interest.” Only a small percentage of the equity in the firm’s current flagship real estate funds is invested in office properties.
Office landlords around the world are being squeezed by higher interest costs, falling property prices and low occupancy rates as employees continue working from home. Fee-bearing capital in Brookfield Asset’s real estate business dipped to US$98 billion in March from US$103 billion at the end of last year.
