Brookfield Asset Management has purchased a 49% stake in a $2.1 billion medical office portfolio held by Healthpeak Properties, a Denver-based healthcare REIT. Brookfield contributed more than $1 billion to form the joint venture, while Healthpeak contributed an 86-property portfolio that was 95% leased at the time of the transaction. Healthpeak will retain a 51% controlling interest in the venture and continue to manage and lease the properties.
The 86-property portfolio totals 5.6 million square feet across 11 states, including Kentucky, Indiana, Pennsylvania, Arkansas, Illinois, Minnesota, New Jersey and New York. Healthpeak has structured a call right allowing it to repurchase Brookfield's interests after seven years at a 6.5% net annual return rate, offering the REIT a path to eventual full ownership if it chooses to exercise the option.
Healthpeak's shares have risen nearly 40% this year following a strategic refocusing of its business. In March, the REIT spun off its senior housing assets into a standalone REIT, narrowing its focus to medical and lab space. As of March 31, Healthpeak owned 688 outpatient medical and lab properties, according to Seeking Alpha.
"This transaction advances our capital allocation priorities and highlights our unique ability to capture the favorable tailwinds driving demand for outpatient care," Healthpeak CEO Scott Brinker said in a statement. The REIT emphasized that Brookfield's investment will provide it with long-term capital while preserving ownership and operational control in the portfolio.
For Brookfield, the deal represents a continuation of its strategy to provide structured capital solutions to real estate companies seeking liquidity without relinquishing operational oversight. "As real estate companies increasingly seek innovative capital solutions, Brookfield is well positioned to structure investments that advance our partners' strategic objectives while providing our investors with access to differentiated, high-quality real estate opportunities," Brookfield Managing Partner of Real Estate Alexander Elawadi said in a statement.
Brookfield Asset Management raised a total of $112 billion in 2025, with $13.3 billion in real estate commitments. The firm raised approximately $900 million for its second real estate fund targeting recapitalizations and equity solutions, the company confirmed last month. The medical office joint venture fits squarely within this mandate, offering Healthpeak a recapitalization alternative to outright asset sales.
The transaction comes amid heightened institutional interest in healthcare real estate, particularly outpatient medical facilities tied to long-term demographic trends. Healthpeak's portfolio benefits from high occupancy and geographic diversification, attributes that appeal to capital partners seeking stable cash flow with inflation-resistant lease structures.
Also on the same day, Brookfield and the Canada Pension Plan Investment Board announced they will buy LXP Industrial Trust in a $5.2 billion transaction that will take the industrial REIT and its 108 properties private. That purchase comes as the U.S. industrial sector continues to bounce back, offering attractive investment opportunities, according to the announcement.
The dual announcements underscore Brookfield's active deployment across property sectors, leveraging its scale to provide liquidity to public REITs while gaining exposure to sectors with structural demand drivers. For Healthpeak, the medical office joint venture preserves strategic flexibility while monetizing a portion of its portfolio at a valuation that reflects investor confidence in outpatient care fundamentals.