Brookfield Raises Nearly $6B in Q1 for Opportunistic Property Fund
Brookfield Asset Management has raised nearly $6 billion for its latest real estate fund in the first quarter of 2024 — one of the largest quarterly fundraising totals on record and a clear indication of increasing investor interest in distressed commercial real estate.
The surge in capital comes at a time when more property owners are looking to offload troubled assets, and lenders are stepping up pressure on borrowers. Brookfield, which moved its headquarters from Toronto to New York City in 2024, is actively capitalizing on the opportunity by acquiring foreclosed properties as well as reasonably stable assets from owners seeking to cash out.
“We’re buying at much lower prices than we would have a few years ago,” said Lowell Baron, Chief Investment Officer of Brookfield’s real estate group, in an interview.
With the $5.9 billion raised in Q1, the firm’s global opportunistic real estate fund has now amassed a total of $16 billion — the largest real estate fund Brookfield has ever assembled. According to sources, the firm is targeting an additional $2 billion before the final close of the fund.
So far, approximately 25% of the fund’s capital has already been deployed, focused primarily on apartment buildings and warehouses. Baron noted that the acquisitions are being made at prices significantly below replacement costs and between 20% and 40% beneath peak valuations.
Brookfield’s aggressive investment strategy highlights a broader trend among institutional investors seeking to capitalize on current market dislocation in commercial real estate.
