Brookfield Asset Management raised nearly $6 billion for its new real-estate fund in the first quarter, one of the largest-ever quarterly fundraising hauls and a sign of growing investor appetite for distressed commercial property, reported the Wall Street Journal. The fundraising occurs as more owners are willing to unload distressed property, and more lenders step up pressure on property owners.
“We’re buying at much lower prices than we would have a few years ago,” Lowell Baron, CIO of Brookfield’s real estate group, told the WSJ. Brookfield Asset Management, which relocated to New York City from Toronto in 2024, is scooping up foreclosed properties and those that are relatively healthy but whose owners want to cash out.
The WSJ reported that the firm’s $5.9-billion fundraising in Q1 brings the total amount raised for its latest global opportunistic vehicle to $16 billion, the largest real estate fund that Brookfield has ever raised. Brookfield hopes to raise another $2 billion before its final close, according to people familiar with the matter.
The fund has already invested about a quarter of its money, mainly on apartment buildings and warehouses. Baron told the WSJ prices are well below replacement cost and about 20% to 40% below what the properties would have fetched at their peak
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