Brookfield Takes a Major Stake in Healthpeak Properties’ $2.1B Portfolio

Brookfield Asset Management has established a joint venture with Denver-based real estate investment trust (REIT) Healthpeak Properties for an interest in its vast medical property portfolio.

The capital partnership, announced Monday, hands Brookfield and its affiliates a 49 percent interest in Healthpeak’s 86 outpatient medical buildings nationwide, valued at approximately $2.1 billion. 

The collection of facilities totals roughly 5.6 million square feet and spans 11 states, including Kentucky, Indiana, Pennsylvania, Arkansas, Illinois, Minnesota, New Jersey and New York. The portfolio is currently 95 percent leased, according to the announcement. 

Newmark acted as a financial adviser in the transaction, and Kirkland & Ellis served as a legal adviser to Brookfield.

Healthpeak, formed in 1985, owns, operates and develops properties for the healthcare industry, including life sciences laboratories and senior housing communities. The REIT is involved in approximately 700 properties nationwide, according to its website.

“Brookfield’s reputation, scale and long-term investment approach complement our deep sector expertise and leading operating platform,” Scott Brinker, president and CEO of Healthpeak, said in a statement. “This transaction advances our capital allocation priorities and highlights our unique ability to capture the favorable tailwinds driving demand for outpatient care.”

Healthpeak will retain a 51 percent controlling interest in the portfolio, thereby preserving its ownership and operational control while accessing new, long-term capital. The REIT received gross proceeds of roughly $1 billion from the deal.

Brookfield’s real estate business line, led by Ben Brown, has been hard at work over the last year and a half. It has executed about $32.3 billion in acquisitions and raised $13.2 billion in new capital. One of those acquisitions was just completed Monday, with Brookfield teaming with the Canada Pension Plan Investment Board to acquire LXP Industrial Trust in a deal valued at approximately $5.2 billion, as Commercial Observer reported. 

“As real estate companies increasingly seek innovative capital solutions, Brookfield is well positioned to structure investments that advance our partners’ strategic objectives while providing our investors with access to differentiated, high-quality real estate opportunities,” Alexander Elawadi, managing partner in Brookfield’s real estate group, said in a statement. 

Emily Davis can be reached at edavis@commercialobserver.com.