There is immense value locked up in GGP’s land and Brookfield is banking on its ability to free it. It’s better to overhaul GGP as a private company because of the amount of capital it will require, Kingston said.
The company -- which is changing its name to Brookfield Property REIT Inc. -- will add to Brookfield’s $160 billion real estate portfolio. The asset manager is showing no signs of slowing down.
The firm has raised $11 billion for its latest flagship real estate fund, after raising $9 billion for its predecessor fund in 2016, according to its second quarter report.
The firm has benefited as institutional investors shift from equities to alternatives, according to Neil Downey, an analyst with Royal Bank of Canada.
Brookfield’s good track record is also enabling it to raise more, he said.
“The size and the scale of what they can to do today is completely different than what Brookfield could contemplate five and 10 years ago,” Downey said. “This has been a 20-plus year success story in the making.”
This story provided by Bloomberg News.