Brookfield to Acquire a Minority Interest in American Real Estate Partners
Brookfield to Acquire a Minority Interest in American Real Estate Partners
Brookfield affiliates will take a minority stake in AREP, aligning their global capital and infrastructure expertise with AREP’s large U.S. data center and real estate platform.
MCLEAN, Va. & NEW YORK--(BUSINESS WIRE)--
American Real Estate Partners (“AREP”), a leading institutional fund manager and real estate developer, and Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) (“BAM”), a leading global alternative asset manager headquartered in New York with over $1 trillion of assets under management, today announced that affiliates of Brookfield have agreed to acquire a minority interest in AREP for an undisclosed amount.
The investment brings together AREP’s vertically integrated data center development platform with Brookfield’s global scale, investment capabilities and experience across real estate, energy and infrastructure. The partnership will support AREP as it continues to grow its investment and development platform across its core markets and asset classes.
“Over the past several years, we have built AREP into a differentiated real estate investment and data center development platform, and we are excited to welcome Brookfield as a partner,” said Brian Katz, Co-Founder and President of American Real Estate Partners. “Brookfield brings tremendous global experience and capabilities, and we look forward to partnering in this next and exciting chapter of growth at AREP.”
Ben Brown, Co-President of Brookfield's Real Estate Group, said, “We are in the early stages of a multi-decade buildout of physical infrastructure required for AI. AREP is a strong, synergistic partner with institutional quality data center development capabilities and similar goals across the digital and power sectors, all of which aligns with our disciplined approach to integrated data center development.”
Closing is anticipated in Q4 subject to customary closing conditions. Rothschild & Co served as exclusive financial advisor to AREP in connection with the transaction.
ABOUT AMERICAN REAL ESTATE PARTNERS
AREP is a Greater Washington, DC- based institutional fund manager and real estate platform with over $30 billion deployed or committed across major U.S. markets. The firm specializes in data center, residential, industrial, and office assets, having acquired over 40 million square feet of Class A real estate and is currently developing over 32 million square feet of hyperscale data centers across the country. AREP’s integrated platform combines acquisition, development, leasing, and asset management to execute at scale and create long-term value for its customers, capital partners, and investors. For more, visit AREP's Newsroom or follow us on LinkedIn.
ABOUT BROOKFIELD ASSET MANAGEMENT
Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager, headquartered in New York, with over $1 trillion of assets under management across infrastructure, energy, private equity, real estate, and credit. We invest client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy. We offer a range of alternative investment products to investors around the world — including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors. We draw on Brookfield’s heritage as an owner and operator to invest for value and generate strong returns for our clients, across economic cycles.
Minority interest represents the ownership share in a company held by investors or entities that do not control or have a majority of the company's voting rights. It shows the portion of the company's value that belongs to these smaller owners, similar to a partial stake in a shared ownership or partnership. For investors, understanding minority interest helps clarify how much of a company's value is attributable to outside owners, affecting overall financial health and decision-making.
hyperscale data centerstechnical
Hyperscale data centers are enormous facilities that house thousands of computer servers to store and process vast amounts of digital information. They operate at a massive scale to support cloud computing, streaming services, and online platforms, making them crucial for handling the growing digital demands of businesses and consumers. For investors, these centers represent key infrastructure that enables digital innovation and often drive significant technological growth.
