Brookfield Asset Management has acquired a 49 percent stake in a $2.1B joint venture with Healthpeak Properties covering 86 medical office buildings totaling 5.6M SF across nearly a dozen states. Healthpeak keeps a 51 percent controlling interest and nets more than $1B in proceeds.
Healthpeak Properties has brought Brookfield Asset Management into a $2.1 billion joint venture built around 86 medical outpatient buildings, a structure that lets the healthcare REIT raise capital at scale while keeping its hand on the portfolio. Brookfield and its affiliates hold a 49 percent stake, recognized as a non-controlling equity interest, while Healthpeak retains 51 percent and serves as managing member. Proceeds to Healthpeak exceed $1 billion. Newmark advised on the transaction.
Assets in the venture total 5.6 million SF and sit in nearly a dozen states, among them Illinois, New York and New Jersey. Occupancy across the portfolio runs at 95 percent, with a weighted average lease term of six years remaining, metrics that reflect the durability outpatient real estate has shown as health systems continue shifting care away from hospital campuses.
For Brookfield, the deal extends an active stretch of healthcare and adjacent dealmaking. Roughly five years ago the asset manager purchased a 32-property Sunrise Senior Living portfolio from Healthpeak for $664 million, so the two firms arrive at this venture with an existing transactional history. In the same week the joint venture was announced, Brookfield and the Canada Pension Plan Investment Board agreed to acquire LXP Industrial Trust in an all-cash transaction valued at $5.2 billion including net debt and preferred equity, at $61.20 per share, a 19.8 percent premium to LXP’s 90-day average.
Medical office portfolios have drawn heavy institutional attention recently. Welltower last year moved to sell a $6 billion, 296-building medical office portfolio across 34 states to Chicago-based Remedy Medical Properties as part of a repositioning toward senior housing. Healthpeak CEO Scott Brinker framed the Brookfield venture as consistent with the company’s capital allocation priorities, according to a company announcement.