Brookfield Caps Global Opportunity Fund at $9B

Based at Brookfield’s offices in New York, BSREP II has already committed more than $4 billion of equity.

NEW YORK CITY— Brookfield Asset Management said Monday it had closed on its B rookfield Strategic Real Estate Partners II global property fund. With $9 billion of equity commitments, the fund exceeded its original target by some $2 billion and is more than twice as large as its predecessor. It was also, according to PERE , the largest opportunistic real estate fund in the market at the time of its closing. Brookfield launched fundraising on BSREP II in 2014 and held a first close a year ago, according to SEC filings. The opportunistic fund will make investments in a diversified portfolio of high-quality assets in North America, Europe, Australia, Brazil and other select markets; to date, it has already committed more than $4 billion across the US, Europe and Brazil. The fund’s investors include more than 100 institutional investors, including sovereign wealth funds, financial institutions and public and private pension plans. In common with the fund’s sheer scale, its roster of limited partners was also about twice as long as that of BSREP I, which closed in 2013. PERE reported Friday that BSREP II’s limited partners included the New York State Common Retirement Fund, which committed $400 million; and PSERS and the Teacher Retirement System of Texas, both of which came in with up to $200 million. Nearly all of the $4.4-billion predecessor fund’s limited partners came back for BSREP II, and the newcomers came primarily from the ranks of US pension plans and Asian investors, according to PERE . Brookfield itself has committed $2.3 billion to the fund through Brookfield Property Partners LP. “We are grateful for the support we have received from our clients,” says Brian Kingston , New York City-based CEO of Brookfield Property Group. “This fundraise eclipsed our target and shows that private capital demand for real estate investment with a strong global sponsor has not abated. The fund is already 45% committed, and we continue to see attractive opportunities to put capital to work around the world.”