Brookfield Property Partners has sold a significant stake in its $20 billion-plus property fund, Brookfield Strategic Real Estate Partners IV (BSREP IV), to an insurance company it owns, Brookfield Wealth Solutions (BWS). This transaction, valued at $1.6 billion, was completed through the issuance of preferred shares in BSREP IV in 2023.
The preferred shares were issued to BWS, which is a subsidiary of Brookfield Corporation, the parent company of Brookfield Property. Additionally, other divisions within Brookfield, spanning sectors such as infrastructure, energy, and asset management, were involved in the transaction. The preferred shares were convertible, enabling BWS to purchase Brookfield Property’s 8% stake in BSREP IV. The conversion of these shares occurred in October 2024, officially giving BWS control over the fund’s ownership.
At the close of 2024, BSREP IV’s assets had grown to approximately $25 billion, a reflection of the investments that are no longer consolidated in Brookfield Property’s accounts following the sale of its stake in the fund. This transaction is part of a broader trend of asset disposals by Brookfield Property to BWS. In 2023, Brookfield Property sold $695 million worth of assets to BWS, followed by a further $1.8 billion in 2024. Among the notable assets sold was a stake in One Liberty Plaza in Manhattan, according to reports by the Financial Times.
Brookfield Property emphasized that all sales were conducted at arm’s length and based on market terms, with no gains or losses realized at the time of transaction. The sales were aimed at further supporting the expansion of BWS.
BSREP IV has made notable acquisitions in recent years. In 2022, the fund purchased three publicly traded European office companies—Alstria (Germany), Befimmo (Belgium), and Hibernia (Ireland)—for a combined value of $7 billion. Additionally, BSREP IV completed a $1.6 billion acquisition of Watermark Lodging Trust, a hospitality owner, in the same year. The fund also raised over $1 billion in two separate capital calls in 2023.
Brookfield Property, which oversees a vast portfolio of global office properties and U.S. shopping malls, has experienced some challenges in recent years. Its 2024 financial accounts revealed a revaluation of assets that showed a decline of $692 million, following a similar decrease of $673 million in 2023. By the end of 2024, Brookfield Property’s total assets amounted to $102 billion, with $51 billion in associated debt. The net operating income from the portfolio was reported at $4.47 billion for 2024, a slight decrease from $4.54 billion the previous year.
Brookfield Property declined to comment further on the sales but noted that the transactions were part of ongoing efforts to scale BWS.
Related topics
