Brookfield Asset Management and Elion Partners, a vertically integrated industry specialist and sponsor of institutional real estate vehicles, announced this week a $ 1 billion strategic partnership that will expand Brookfield Real Estate Secondaries’ logistics portfolio in key infill markets.
Brookfield recapitalized Elion Logistics Park 55, a Chicago master plan industrial park with the potential to develop approximately $ 1 billion in industrial real estate. The project includes five existing Class A industrial assets totaling four million square feet that are 100% leased, as well as the potential to develop up to 15 million square feet of additional industrial properties in the future. The planned logistics park is located close to the BNSF railway line, offers several amenities to tenants, including essential travel and repair services, and is financed through tax increases. Park Madison Partners acted as exclusive capital advisor for the recapitalization.
âIndustrial logistics real estate continues to experience positive momentum, and now is the logical time to seek long-term capital,â Juan DeAngulo, managing partner of Elion, said in a statement. “This partnership structure and the support of Brookfield will enable Elion to realize the long-term development plans of the ELP 55.”
âWe are excited about the partnership with Elion and the opportunity to gain exposure to high quality industrial assets in limited supply markets with significant upside potential,â said Chris Reilly, Managing Partner of Brookfield, in a statement.
The investment also included an $ 80 million equity commitment to Elion’s latest value-added fund affiliated with Elion, Elion Real Estate Fund V. The fund closed last month as it hit its cap of $ 500 million. dollars. A majority of Fund V’s portfolio has been pre-specified on Brookfield’s commitment, representing more than 3.2 million square feet of logistics real estate in infill coastal markets.
Brookfield, one of the world’s largest real estate investors with more than $ 200 billion in assets under management, launched its Real Estate Secondaries business last year. The strategy is geared towards GP investors who seek flexibility and liquidity in the management of their investments in the private market.
Joe Dyton can be contacted at [email protected]