Brookfield announces $1bn partnership with Elion Partners

Brookfield Asset Management has announced a $1 billion partnership with Elion Partners for expanding the logistics portfolio of its real estate secondaries business across core infill markets.

The global alternative asset manager said that it recapitalized a Chicago master-planned industrial park called Elion Logistics Park 55 (ELP 55), which has the potential to be developed as a nearly $1 billion industrial real estate.

The project has five existing Class A industrial assets, that span four million square feet, that are fully leased. It is said to have the potential to develop up to 15 million square feet of some more industrial properties in the future.

Brookfield Asset Management said that the master-planned logistics park is located near the BNSF railway. The logistics park is said to provide various tenant amenities.

Aerial view of the Elion Logistics Park 55. (Photo: Business Wire)

Juan DeAngulo — Managing Partner at Elion Partners said: “Industrial logistics real estate continues to experience positive momentum, and now is the logical time to seek long-term capital.

“This partnership structure and Brookfield’s support will enable Elion to fulfill the long-term development plans for ELP 55.”

According to Brookfield Asset Management, the investment also had an equity commitment of $80 million to Elion Real Estate Fund V, the latest affiliated value-added fund of Elion Partners.

Chris Reilly — Managing Partner at Brookfield Asset Management said: “We are excited about the partnership with Elion and the opportunity to gain exposure to high-quality industrial assets in supply-constrained markets with significant potential upside.”