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Brookfield and Healthpeak create $2.1B medical office joint venture
Healthpeak will contribute an 86-property, 95% leased medical and lab portfolio totaling 5.6 million square feet across 11 states, while keeping operational control and a 51% stake.
Brookfield Asset Management is buying a 49% stake in a medical office portfolio valued at $2.1 billion, forming a joint venture with Healthpeak Properties, a Denver-based healthcare REIT. According to Bisnow, Brookfield contributed more than $1 billion to set up the venture.
Healthpeak will contribute an 86-property portfolio that is 95% leased, and will retain a 51% controlling interest. The properties total 5.6 million square feet across 11 states, with Healthpeak continuing to manage and lease the space.
The REIT said its shares have risen nearly 40% this year and that in March it spun off its senior housing assets into a standalone REIT, narrowing focus to medical and lab space. Healthpeak CEO Scott Brinker said the deal supports its capital allocation priorities and reflects demand tailwinds for outpatient care.
Healthpeak will also have a call right to repurchase Brookfield’s interests after seven years at a 6.5% net annual return rate, Bisnow reported. Brookfield Managing Partner of Real Estate Alexander Elawadi said the transaction is designed to provide long term capital and access to differentiated medical office opportunities.