Brookfield Acquires Quality Portfolio of Apartment Communities
NEW YORK, NEW YORK -- (Marketwire) -- 02/11/13 -- Brookfield Asset
Management Inc. (TSX:BAM.A)(NYSE:BAM)(EURONEXT:BAMA) today announced
the acquisition of portfolio of 19 apartment communities with 4,892
units located in North Carolina, South Carolina and Virginia for a
total of $414 million from Babcock & Brown Residential.
This high quality portfolio is concentrated in the Charlotte and
Raleigh-Durham sub-markets where strong economic and population
growth is expected to yield superior occupancy rates and rental
increases. The average occupancy of the portfolio is 92%. The
portfolio is currently financed with individual non-recourse first
mortgage loans which have been assumed as part of the transaction.
Fairfield Residential, an affiliate of Brookfield, has an existing
geographic footprint in these same markets and will manage the assets
in the portfolio. Brookfield intends to invest an additional $30
million to maximize value in the portfolio by selectively upgrading
and repositioning assets to increase rents and return on investment.
This transaction will bring Brookfield's growing multifamily
portfolio to approximately 20,000 units throughout the United States.
"The acquisition of this attractive portfolio adds to Brookfield's
significant multi-family platform and positions us for continued
growth in this property sector," said David Arthur, managing partner
at Brookfield Asset Management.
Babcock & Brown was advised by Robert W. Baird & Co.
Brookfield Asset Management Inc. is a global alternative asset
manager with approximately $150 billion in assets under management.
The company has over a 100-year history of owning and operating
assets with a focus on property, renewable power, infrastructure and
private equity. Brookfield has a range of public and private
investment products and services, which leverage our expertise and
experience and provide us with a competitive advantage in the markets
where we operate. Brookfield is co-listed on the New York and Toronto
Stock Exchanges under the symbol BAM and BAM.A, respectively, and on
NYSE Euronext under the symbol BAMA. For more information, please
visit our website at www.brookfield.com.
Fairfield Residential is among
the most experienced multifamily real
estate operating companies in the United States and provides
acquisitions, entitlement, development, construction, redevelopment,
property and asset management, and disposition services to its joint
venture partners and affiliates, and to third parties. Fairfield is
active in 40 geographically diverse markets and currently manages
approximately 50,000 apartment homes across the U.S. Fairfield has
developed and acquired $20 billion of real estate assets and has sold
more than $13.0 billion in multifamily investments.
For more information, please visit our web site at
Forward Looking Statements and Information
This press release contains "forward-looking information" within the
meaning of Canadian provincial securities laws and "forward-looking
statements" within the meaning of Section 27A of the U.S. Securities
Act of 1933, as amended, Section 21E of the U.S. Securities Exchange
Act of 1934, as amended, "safe harbor" provisions of the United
States Private Securities Litigation Reform Act of 1995 and in any
applicable Canadian securities regulations. Forward-looking
statements include statements that are predictive in nature, depend
upon or refer to future events or conditions, include statements
regarding the operations, business, financial condition, expected
financial results, performance, prospects, opportunities, priorities,
targets, goals, ongoing objectives, strategies and outlook of
Brookfield and Verde, as well as the outlook for North American and
international economies for the current fiscal year and subsequent
periods, and include words such as "expects", "intends" or negative
versions thereof and other similar expressions, or future or
conditional verbs such as "may," "will," "should," "would" and
Although we believe that our anticipated future results, performance
or achievements expressed or implied by the forward-looking
statements and information are based upon reasonable assumptions and
expectations, the reader should not place undue reliance on
forward-looking statements and information because they involve known
and unknown risks, uncertainties and other factors, many of which are
beyond our control, which may cause the actual results, performance
or achievements of Brookfield and Verde to differ materially from
anticipated future results, performance or achievement expressed or
implied by such forward-looking statements and information.
Factors that could cause actual results to differ materially from
those contemplated or implied by forward-looking statements include,
but are not limited to: the impact or unanticipated impact of general
economic, political and market factors in the countries in which we
do business; the behavior of financial markets, including
fluctuations in interest and foreign exchanges rate; global equity
and capital markets and the availability of equity and debt financing
and refinancing within these markets; the risk that Verde will not be
integrated successfully with and into Brookfield's organization; the
risk that cost savings and any other synergies from the transaction
may not be fully realized or may take longer to realize than
expected; disruption from the transaction making it more difficult to
maintain relationships with customers or employees; business
competition; operational and reputational risks; technological
change; changes in government regulation and legislation within the
countries in which we operate, catastrophic events, such as
earthquakes and hurricanes; the possible impact of international
conflicts and other developments including terrorist acts; and other
risks and factors detailed from time to time in Brookfield's
documents filed with the securities regulators in Canada and the
We caution that the foregoing list of important factors that may
affect future results is not exhaustive. When relying on our
forward-looking statements, investors and others should carefully
consider the foregoing factors and other uncertainties and potential
events. Except as required by law, Brookfield and Verde undertake no
obligation to publicly update or revise any forward-looking
statements or information, whether written or oral, that may be as a
result of new information, future events or otherwise.
Brookfield Asset Management Inc.
SVP, Communications & Media
(416) 363-2856 (FAX)
Brookfield Asset Management Inc.
SVP, Investor Relations
(416) 363-2856 (FAX)
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