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Brookfield Asset Management Takes Stakes in Two US Companies for a Combined $7.3 Billion

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Brookfield Asset Management (BAM.TO, BAM) on Monday said it entered two multibillion-dollar deals, agreeing to a joint venture to acquire outpatient medical buildings in the United States and teaming up with the Canada Pension Plan Investment Board to acquire LXP Industrial Trust (LXP) for $5.2 billion.

The company said it formed a joint venture with Healthpeak Properties (DOC) for a 49% stake in outpatient facilities valued at $2.1 billion. It paid its partner $1.03 billion for the stake. Healthpeak will continue to manage the properties, providing asset management, leasing, and property management services. Healthpeak retains a seven-year right to buy back Brookfield's interest by providing its junior partner with a 6.5% return on its investment.

Brookfield also on Monday said it and the CPP Investment Board agreed to acquire LXP Industrial Trust for $5.2 billion, including debt. The company said LXP "owns one of the largest portfolios of modern warehouse and logistics facilities in the US, comprising approximately 53 million square feet across 108 properties in attractive industrial markets in the Sunbelt and Midwest".

LXP shareholders will receive $61.20 per share, a 12.3% premium to its 30-day weighted average price on the New York Stock Exchange.

"The acquisition aligns with our strategy of investing in high-quality real estate with durable cash flows and opportunities to create value through active asset management. We're excited to partner with CPP Investments and build on LXP's strong foundation," Lowell Baron, CEO of Brookfield Real Estate, said in a release.

Brookfield shares opened down C$0.01, or 0.2%, to C$67.70 on the Toronto Stock Exchange.

Price: $67.72, Change: $+0.01, Percent Change: +0.01%

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