Brookfield Asset Management and Elion Partners have officially announced a strategic partnership valued at $1 billion. This collaboration is set to significantly expand Brookfield’s Real Estate Secondaries’ logistics portfolio, focusing on core infill markets and highlighting the strength and expertise of Elion Partners in the industrial sector.
The partnership is anchored by Brookfield’s recapitalization of Elion Logistics Park 55 (“ELP 55”), a massive, master-planned industrial park located in Chicago. This strategic asset alone holds the potential for approximately $1 billion of industrial real estate development. ELP 55 currently boasts five existing Class A industrial buildings, summing up to four million square feet, all of which are fully leased. Looking ahead, there’s potential for developing up to an additional 15 million square feet of industrial properties within the park. Its prime location adjacent to the BNSF railway, coupled with tenant amenities that include essential travel and repair services, and benefits from tax increment financing, make Elion Logistics Park 55 a highly attractive logistics hub. Park Madison Partners served as the exclusive capital advisor for this significant recapitalization.
Juan DeAngulo, Managing Partner at Elion Partners, emphasized the opportune timing of this partnership: “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 Partners to fulfill the long-term development plans for ELP 55.”
Chris Reilly, Managing Partner at Brookfield, also expressed enthusiasm about the collaboration, stating, “We are excited about the partnership with Elion Partners and the opportunity to gain exposure to high-quality industrial assets in supply-constrained markets with significant potential upside.”
In addition to the ELP 55 recapitalization, the investment includes an $80 million equity commitment to Elion Real Estate Fund V, Elion Partners’ latest affiliated value-added fund. Fund V recently closed, hitting its hard cap of $500 million last month. Significantly, a majority of Fund V’s portfolio, representing over 3.2 million square feet of logistics real estate across infill coastal markets, was pre-specified upon Brookfield’s commitment, underscoring Brookfield’s confidence in Elion Partners‘ investment strategy.
Brookfield, recognized as one of the world’s largest real estate investors with over $200 billion in assets under management, launched its Real Estate Secondaries business just a year prior to this partnership. This strategy focuses on providing GP investors with flexibility and liquidity in managing their private market investments, a need perfectly addressed by this deal with Elion Partners.
About Elion Partners
Elion Partners stands as a vertically integrated, private equity real estate investment firm with a focused expertise in the industrial sector. Functioning both as a fiduciary and operator, Elion Partners manages a substantial portfolio of over $2 billion in real estate assets through closed-end funds and permanent capital investment vehicles. Notably, the firm is 100% minority-owned, and its team is composed of more than 65% diverse professionals, highlighting Elion Partners‘ commitment to diversity and inclusion within the real estate industry. For further details, please visit www.elionpartners.com.
About Brookfield Asset Management
Brookfield Asset Management is a globally recognized leader in alternative asset management, overseeing over US$600 billion of assets under management across diverse sectors including real estate, infrastructure, renewable power, private equity, and credit. Brookfield’s investment strategy centers around owning and operating long-life assets and businesses that form the essential infrastructure of the global economy. Leveraging its expansive global network, access to significant capital, and deep operational expertise, Brookfield provides a wide array of alternative investment products to a global investor base, including public and private pension plans, endowments, sovereign wealth funds, and more. Brookfield Asset Management is publicly listed on the New York and Toronto stock exchanges under the symbols BAM and BAM.A, respectively. More information can be found at www.brookfield.com.
Elion Partners Media Contact
Kaylee McCall Correa
Tel: +1 954-232-5573
Email: [[email protected]](mailto:[email protected])
Brookfield Asset Management Communications & Media
Kerrie McHugh
Tel: +1 212-618-3469
Email: [[email protected]](mailto:[email protected])
Source: Elion Partners and Brookfield Asset Management
