Brookfield to Take Over as Oaktree REIT’s Advisor
Brookfield Asset Management Inc. (NYSE: BAM) and Oaktree Capital Management L.P. have agreed to transition the advisory role of Oaktree Real Estate Income Trust Inc. to an affiliate of Brookfield.
Brookfield Asset Management Inc. (NYSE: BAM) and Oaktree Capital Management L.P. have agreed to transition the advisory role of Oaktree Real Estate Income Trust Inc. to an affiliate of Brookfield.
Oaktree REIT invests primarily in commercial real estate assets located across the top 50 markets in the United States. The company launched its $2 billion offering in April 2018, and as of mid-June 2021, raised $190.1 million in investor equity. Its real estate portfolio was valued at $356.6 million as of May 2021, and its investments in real estate-related securities totaled $85.3 million.
Following the transition, the non-traded REIT will change its name to Brookfield Real Estate Income Trust Inc.
According to a filing with the Securities and Exchange Commission, Brookfield is expected to contribute interests in three properties to the REIT, including multifamily properties in Florida and Nashville, and a minority joint venture interest in an office property located in London, United Kingdom, valued at more than $400 million (with an expected equity contribution value of more than $180 million).
Brookfield REIT will be distributed by Brookfield Oaktree Wealth Solutions, a wealth management platform established to offer alternative investment products to individual and high-net-worth investors globally.
Going forward, Oaktree will manage certain of the REIT’s assets and its liquid securities portfolio. Manish Desai, the REIT’s current president, will transition to Brookfield to serve as president and chief operations officer of the Brookfield REIT.
“Oaktree has done an excellent job, generating strong returns for stockholders,” said Zach Vaughan, managing partner at Brookfield and CEO of Brookfield REIT following the transition. “This transition benefits stockholders going forward through the combination of Brookfield’s sourcing networks, operating capabilities and global footprint, while maintaining the benefit of Oaktree’s leading credit expertise.”
The REIT’s investment strategy will largely stay the same but will include exposure to certain non-U.S. markets where Brookfield has existing capabilities, the company said.
The transition is expected to occur in the fourth quarter of 2021.
Brookfield Asset Management is a global alternative asset manager with more than $600 billion of assets under management across real estate, infrastructure, renewable power, private equity and credit.
Oaktree is a global investment manager specializing in alternative investments with $153 billion in assets under management as of March 31, 2021.
