(RTTNews) – Healthpeak Properties, Inc. (DOC) and Brookfield Asset Management (BAM, BAM.TO) announced on Monday that they have formed a $2.5 billion long-term strategic capital partnership through a joint venture involving a portfolio of outpatient medical buildings across the U.S.
Healthpeak contribution is comprised of 86 properties totaling around 5.6 million square feet of around $2.1 billion.
In the JV, Healthpeak will have a controlling interest of 51 percent, while Brookfield will hold 49 percent. Healthpeak received gross proceeds of around $1.025 billion from the sale of 49% interest to Brookfield with a valuation of around $380 per square foot.
Healthpeak will provide asset management, leasing, property management services, and others. Further, it will retain a call right for a finite period beginning after year seven to repurchase Brookfield’s interest at a price sufficient to provide Brookfield with a 6.5% net annual rate of return.
The portfolio is diversified across 11 states and is 95% leased with a weighted average remaining lease term of six years.
Scott Brinker, CEO of Healthpeak, said: “This transaction advances our capital allocation priorities and highlights our unique ability to capture the favourable tailwinds driving demand for outpatient care.”
The new venture is expected to be consolidated on Healthpeak’s financial statements, with Brookfield’s investment as a non-controlling equity interest.
