Brookfield Asset Management Eyes Large Investments
Brookfield Asset Management is planning large global investments as property values plummet due to economic pressures.
Toronto-based BAM is on track to raise a record US$150 billion in capital in 2023, the company said in its second-quarter earnings report.
“Over the next 12 to 18 months, you are going to see some very significant transactions by us or others, hopefully us,” CEO Bruce Flatt said on a conference call with analysts.
Real estate accounted for one-third – $5 billion – of BAM’s $15 billion worth of asset sales in the first half of 2023, the company reported. The remaining $10 billion in sales involved infrastructure.
High interest rates, inflation, large debt and tightened lender requirements are forcing investors out of stressed commercial property markets across the globe, said BAM in a letter to shareholders also released Wednesday. U.S. markets have been particularly affected.
“The best real estate opportunities since 2009 are coming,” said the company in its letter.
Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate.
Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s.
In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star.
Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.