Oaktree Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust, has changed its name to Brookfield Real Estate Income Trust Inc. after an affiliate of Brookfield Asset Management Inc. (NYSE: BAM) took over as the REIT’s adviser.
The REIT’s former adviser, Oaktree Fund Advisors LLC, now serves as sub-adviser to manage certain properties and debt investments that were acquired before the transition and to select and manage the REIT’s liquid investments.
Oaktree REIT launched its $2 billion offering in April 2018, and as of September 2021, raised $290.3 million in investor equity. Its real estate portfolio was valued at $475.6 million as of September 2021, and its investments in real estate-related securities totaled $95.2 million.
The $7.5 billion Brookfield REIT offering is comprised of $6 billion in Class T, Class S, Class D and Class I shares, and $1.5 billion in distribution reinvestment plan shares.
Zachary Vaughan, a managing partner in Brookfield’s real estate group, serves as the REIT’s chief executive officer. Manish Desai, who served as president of Oaktree REIT, transitioned to Brookfield to serve as president and chief operations officer. Dana Petitto, a managing director of finance in Brookfield’s real estate group, serves as chief financial officer.
“We are extremely pleased to formally launch the new Brookfield REIT, combining Brookfield’s vast global real estate business with Oaktree’s leading credit capabilities,” said Vaughan. “With three newly contributed investment properties from Brookfield, the total asset value of the REIT has more than doubled to approximately $1 billion.”
As previously reported, Brookfield agreed 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.
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, such as Toronto, London, Sydney and Seoul, the company said.
During the third quarter, the REIT completed the acquisition of 1110 Key Federal Hill, a multifamily property in Baltimore, Maryland, for approximately $75 million. Brookfield REIT said that “it is pursuing additional near-term acquisitions across multiple property sectors, including multifamily, logistics and others in which Brookfield has existing investment portfolios and operating capabilities.”
Brookfield Asset Management is a global alternative asset manager with more than $625 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 $156 billion in assets under management as of June 30, 2021. In September 2019, Brookfield acquired 61.2 percent of Oaktree’s business.