Brookfield Asset Management and Hillwood, a Dallas/Fort Worth-based real estate investor and developer owned by Ross Perot, Jr., announced a joint venture to acquire, develop and manage industrial property, principally large warehouses, across the United States. With an equity commitment of $400 million, the partnership is expected to deploy up to $1 billion within the first three years. Hillwood will locate industrial property investments with potential for value creation.
The partnership represents one of the more significant commitments to U.S. industrial real estate since the economic downturn that began in 2008. With a wealth of combined experience in investments, acquisitions, development, finance, accounting, legal, leasing and property and asset management, the partnership has the resources and expertise to establish a significant presence in the industrial warehouse market.
“The partnership between Brookfield and Hillwood is not only the right fit, it’s happening at the right time,” said Ross Perot, Jr., chairman, Hillwood. “Industrial development slowed during the downturn due to a lack of equity and debt. Given the liquidity and resources supporting our investment, our joint venture is well-positioned to benefit from renewed demand for industrial space which will increase as the economy continues to show signs of improvement.”
“As long-term, value-oriented real estate investors, we believe this is an excellent time to selectively build a portfolio of high-quality industrial properties, and we look forward to expanding our relationship with Hillwood,” said David Arthur, managing partner at Brookfield Asset Management. “This initiative expands the scope of our real estate platform in an exciting asset class, strengthening our global property operations in line with the expected launch later this year of our flagship property vehicle, Brookfield Property Partners.”