Brookfield Asset Management Inc.
) announced the purchase of 19 apartment communities (4,892
units) in N.C., S.C. and Va. from Babcock & Brown Residential
Holdings LLC. The deal value is estimated to be around $414
The acquired properties are situated in the Charlotte and
Raleigh-Durham sub-markets, which are economically viable and
have a robust population growth. These factors prompted
Brookfield to buy properties in this region, as it is expected to
contribute greatly to higher occupancy rates and increased rental
income. Currently, average occupancy of the portfolio is 92% and
is financed with individual non-recourse first mortgage loans,
which have been considered a part of the deal.
Fairfield Residential - a wing of Brookfield - has been allotted
the task of managing these properties as it has significant
presence in the region. Moreover, Brookfield is likely to put in
around $30 million as additional investment to revamp the
properties to maximize the returns from the investment.
The acquisition of the abovementioned properties will strengthen
Brookfield's multifamily portfolio to about 20,000 units across
the U.S. In Dec 2012, Brookfield acquired majority stake in Verde
Realty - a U.S. based privately-owned real estate investment
trust (REIT). The company has shelled out $886 million to buy
stake in Verde.
The acquisition is expected to prove very lucrative for
Brookfield. Through this acquisition, the company will be able to
expand its footprint in the international real estate arena.
Currently, Brookfield holds a Zacks Rank #3 (Hold). Other asset
management stocks that are doing well and are worth considering
for investment include -
Virtus Investment Partners, Inc.
Cohen & Steers Inc.
). Virtus carries Zacks Rank #1 (Strong Buy) while the other two
carry Zacks Rank #2 (Buy).
BROOKFIELD ASST (BAM): Free Stock Analysis
COHEN&STRS INC (CNS): Free Stock Analysis
LAZARD LTD (LAZ): Free Stock Analysis Report
VIRTUS INVESTMT (VRTS): Free Stock Analysis
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