Brookfield to Acquire Minority Stake in American Real Estate Partners

Affiliates of Brookfield Asset Management have agreed to acquire a minority interest in American Real Estate Partners, establishing a partnership focused partly on the growing infrastructure requirements of artificial intelligence.

The investment combines Brookfield’s global real estate, energy and infrastructure capabilities with AREP’s vertically integrated investment and development platform. McLean, Virginia-based AREP operates across data centers, residential, industrial and office properties.

AREP’s PowerHouse Data Centers platform has 140 facilities underway or in planning across nine major U.S. markets, representing nearly 10 gigawatts of potential capacity, according to the company. The platform has more than 39 million square feet of facilities completed, underway, or planned.

“Brookfield brings tremendous global experience and capabilities, and we look forward to partnering in this next and exciting chapter of growth at AREP,” said Brian Katz, AREP co-founder and president.

Brookfield has been expanding its exposure to digital infrastructure as AI development increases demand for computing capacity, electricity and large-scale data-center campuses.

“We are in the early stages of a multidecade buildout of physical infrastructure required for AI,” said Ben Brown, co-president of Brookfield’s Real Estate Group.

The partnership will provide AREP with additional resources to expand its investment and development operations across its core property types and geographic markets.

Financial terms were not disclosed. The transaction is expected to close in the fourth quarter.

Rothschild & Co. served as AREP’s exclusive financial adviser on the transaction.