Brookfield Shuffles Real Estate Portfolio With Multiple Deals

The Canadian asset management company Brookfield Asset Management Inc (NYSE: BAM) is reshuffling its real estate portfolio with multiple deals.

In one deal, it is considering the sale of 2.3 million square feet of life sciences real estate for $3 billion, according to Bloomberg.

In a separate transaction, it invested $2 billion in real estate in the Indian subcontinent, reports Reuters.

What Happened: Brookfield is in talks to dispose of the life sciences property it acquired in 2018 from Forest City Realty Trust Inc, according to Bloomberg. However, no official comments have been made yet.

The asset manager has also entered into a $2 billion purchase agreement with a privately-owned Indian real estate firm RMZ Corp, for acquiring 18% of the latter's portfolio. This deal is Brookfield's largest investment in India, and it includes RMZ’s CoWrks portfolio of rent yielding commercial properties and co-working spaces in two Bangalore and Chennai.

Why Does It Matter: In September, Bloomberg reported that Life sciences realty has proven to be more stable in comparison to commercial office space.

On Monday, Brookfield entered into a $10 billion strategic partnership with insurance company American Equity Investment Life Holding Company (NYSE: AEL) for buying a 20% stake in the insurance company.

Last week, alternative asset manager and Brookfield market peer Blackstone Group Inc (NYSE: BX) announced the sale of its life sciences realty company BioMed Realty for $14.6 billion, generating a profit of approximately $6.5 billion in four years.

Price Action: BAM shares dropped marginally by 0.12% to close at $33.69 Monday.