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Private Equity Verde Realty-Brookfield

Published on December 21st, 2012 | by Ted Liu


Brookfield closes $886 million Verde Realty acquisition

Brookfield Asset Management Inc. (TSX: BAM.A; NYSE: BAM; EURONEXT: BAMA), through BSREP Industrial L.P., has completed the acquisition of a majority (81%) ownership position in Verde Realty with the remaining equity retained primarily by some existing Verde shareholders.

Houston, Texas based Verde Realty, a Maryland real estate investment trust, is a fully integrated, self-administered and self-managed REIT that specializes in the ownership, acquisition and management of industrial distribution facilities.

Verde Realty owns 111 industrial distribution facilities comprised of 18 million square feet of space in major U.S. distribution markets and gateway trade markets in the southwestern United States, California, suburban Chicago, Maryland, Utah and northern Mexico, as well as over 20,000 acres of land intended for future sale and development.

Under new ownership, the company plans to expand its holdings and seek consolidation opportunities in the fragmented industrial real estate sector.

In July 2012, Brookfield Asset announced BSREP Industrial and Hillwood Development Company entered into a definitive agreement to acquire Verde Realty at price of $12.85 per share for a total equity transaction value of up to $366 million.

Under the agreement, BSREP Industrial Merger Sub LLC, a subsidiary of BSREP Industrial, will merge into Verde Realty, with Verde as the surviving entity. Hillwood Development Company will be an investor in Verde. BSREP Industrial L.P. has agreed to negotiate in good faith to provide additional capital to Verde in the form of a backstop for rights offerings of up to $200 million.

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About the Author

Ted is an editor of CVCA News and Research Director for CVCA - Canadian Venture Capital & Private Equity Association. Ted has been following Canadian venture capital and private equity industry since 1993.

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