Brookfield Has $106B in Dry Powder, Targeting CRE

Brookfield Asset Management plans to launch its seventh real estate debt fund in 2024 with a focus on the U.S. commercial real estate market. The Toronto-based asset management firm said it has about $106 billion in dry powder to invest in new transactions.

The firm revealed in its first quarter earnings results that it was particularly bullish on U.S. commercial real estate, implying that it may boost these investments in the coming months.

“Particularly in our real estate flagship, this is where we’re really seeing the market opening up,” said Brookfield’s president Connor Teskey. “And investors are seeing the upside and the rebound in that asset class and looking to get an increasing amount of exposure.”

Brookfield has already raised $8 billion for its most recent real estate flagship fund and intends to launch the seventh vehicle later this year. Managing director Bruce Flatt stated that the firm completed about $15 billion in financing for its real estate unit in the first quarter, including $4 billion for its office portfolio.

Flatt added that the company has also refinanced $18 billion overall at lower debt costs than its previous borrowings.

The company posted distributable earnings of $1.22 billion for the first quarter, up from $1.16 billion in the same period the previous year. Revenue was $22.91 billion, down slightly from $23.30 billion in the first quarter of 2023.

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