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Healthpeak Properties and Brookfield Asset Management have entered into a strategic joint venture valued at approximately USD 2.1 billion to strengthen their healthcare real estate portfolio. Under the agreement, Brookfield has acquired a 49% stake in the venture, while Healthpeak has retained a 51% ownership and will continue to manage the assets. The transaction has generated USD 1.02 billion in proceeds for Healthpeak through the sale of its minority interest. The agreement also provides Healthpeak with the option to repurchase Brookfield's stake after the seventh year under pre-agreed terms.
Healthpeak Properties has entered into a strategic joint venture with Brookfield Asset Management in a transaction valued at approximately USD 2.1 billion, marking another investment in the healthcare real estate sector.
As part of the agreement announced earlier this week, Brookfield has acquired a 49% stake in the joint venture, while Healthpeak has retained a 51% ownership interest and will continue to manage the venture and its assets. The ownership structure allows Healthpeak to maintain operational control while bringing in Brookfield as a long-term capital partner.
The transaction has enabled Healthpeak to receive approximately USD 1.02 billion from the sale of the 49% interest. The deal was completed at a 5.9% capitalisation (cap) rate, a key valuation metric commonly used in commercial real estate to assess the relationship between an asset's income and its market value.
The agreement also includes a long-term strategic provision that gives Healthpeak the right to repurchase Brookfield's 49% interest after the seventh year. The repurchase option has been structured to provide Brookfield with a 6.5% return, offering a defined exit mechanism while allowing Healthpeak the flexibility to regain full ownership in the future.
Healthpeak Properties is one of the leading real estate investment trusts (REITs) focused on healthcare real estate in the United States, with assets spanning life science campuses, outpatient medical facilities and other healthcare-related properties. Brookfield Asset Management is among the world's largest alternative investment managers and has a significant global presence across real estate, infrastructure, renewable power and private equity investments. The partnership reflects continued institutional interest in high-quality healthcare real estate assets, which are generally viewed as stable, income-generating investments.
Source PTI
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