Brookfield Asset Management Inc.
) has purchased the majority of ownership 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.
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With the completion of this stake buyout, Brookfield will own and
manage nearly 81% of common equity stake in Verde and the
remaining 19% will be held by the some of the existing
shareholders of the latter. The Verde stake will provide
Brookfield with plethora of opportunities to expand its real
The abovementioned acquisition has placed Brookfield for a solid
growth as an operator and distributor of industrial facilities in
United States as well as Mexico. Verde owns nearly 111 industrial
distribution facilities including 18 million square feet of space
in the main U.S. distribution markets and gateway trade markets
along the American and Mexican borders.
Further, Verde owns over 20,000 acres of land meant for future
sales and developments. The collaboration with Brookfield will
give Verde a new dimension and will aid in seeking consolidation
opportunities in the highly competitive real estate industrial
sector, thereby boosting its overall profitability.
We believe that the acquisition will prove very lucrative for
Brookfield. Through this acquisition, the company will be able to
expand its footprint internationally. Also, the merger would
enhance the efficiencies of both the companies.
Brookfield competes with
SL Green Realty Corp.
Vornado Realty Trust
), among others. Currently, Brookfield carries a Zacks #3 Rank,
which translates into a short-term Hold rating.