The fundraising reflects growing willingness among property owners to sell troubled assets, and increased pressure from lenders.
As a result, firms like NY-based Brookfield are moving from capital accumulation to active acquisition strategies.
“We’re buying at much lower prices than we would have a few years ago,” Lowell Baron, Chief Investment Officer of Brookfield’s real-estate group told the Wall Street Journal.
About one-quarter of the fund has already been invested, mainly in apartment buildings and warehouses.
According to Mr Baron, asset prices are “well below what it would cost to replace” them and are around “20% to 40% of what the properties would have traded for at their peak.”
Key acquisitions include a portfolio of troubled loans backed by more than 2,000 San Francisco apartments and the purchase of Tritax EuroBox, a European logistics property owner, in a deal valuing the company at over $1.4 billion (approx. A$2.15 billion).
The firm is reportedly aiming to raise a further $2 billion (approx. A$3.1 billion) before the fund’s final close.
Real-estate private-equity fundraising is showing signs of recovery. According to PERE, funds raised $57.1 billion (approx. A$87.8 billion) globally in the first quarter of 2025, up from $32.5 billion (approx. A$50 billion) during the same period last year.
Blackstone led with the two largest fund closes of the quarter.
Baron said Brookfield’s decisions would factor in ongoing economic uncertainty, including the Trump administration’s tariff efforts and fears of a potential recession. But he also noted that:
“People in general are nervous and uncertain,” and “That keeps competition away.”
