Iconic Canadian investment firm Brookfield Asset Management has officially relocated its head office to New York from Toronto.

However, BAM will retain its Canadian ownership registration tied to the company’s Toronto office, which remains in operation but is no longer classified as the firm’s headquarters. BAM ranks among Canada largest institutional commercial real estate investors while also investing in a number of other sectors.

The head-office move is part of a corporate restructuring that will see all of BAM’s shares become public to position the company for broader equity-index inclusion, particularly within the U.S. market. BAM and its majority shareholder Brookfield Corporation expect the relocation and restructuring to enhance BAM’s visibility and simplify its corporate structure for investors, according to a news release.

The restructuring includes an arrangement whereby BAM will directly own 100% of its asset-management business. Brookfield Corporation, currently holding a 73% interest in BAM, will retain majority ownership as its private shares are converted to public stock.

According to a Globe and Mail report, the decision to relocate the head office reflects BAM’s strategy to broaden its shareholder base, partly by qualifying for inclusion in more U.S. stock indices. The change will allow BAM to attract both passive institutional investors, who manage trillions in capital, and active public investors who benchmark against leading U.S. indices, the Globe reported.

Brookfield stressed that the arrangement will not alter its operational or strategic plans or impact the tax treatment of dividends for BAM and Brookfield Corporation. BAM plans to hold a special shareholder meeting on December 20 for a vote on the arrangement, with the process expected to close in early 2025, pending shareholder and court approval, along with listing approvals on the New York and Toronto stock exchanges.

BAM’s shift to a simplified structure also aims to allow the company’s market capitalization to more accurately reflect its full value. Currently, BAM’s market capitalization stands at about $23 billion, representing only its 27% of the asset-management business.

With the new arrangement, BAM’s market cap could reflect the full $85-billion estimated total value of its asset management business based on BAM class A share prices, according to the two companies.

Brookfield executives outlined the plan during a September presentation in New York, emphasizing the potential for increased investor reach, the Globe reported.

It remains to be seen how the emphasis on increasing stock value will affect BAM’s decisions to buy and sell properties. At this point, it does not appear that the head-office relocation or ownership restructuring will have a major impact on BAM’s real estate investments.

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