Brookfield Takes 49% Stake In $2.1 Billion Healthpeak Medical Office Portfolio

Institutional capital continues to target healthcare real estate, with Brookfield Asset Management making a major investment in a large portfolio of outpatient medical properties owned by Healthpeak Properties.

Brookfield is contributing more than $1 billion to a joint venture with Denver-based Healthpeak, acquiring a 49% interest in a medical office portfolio valued at approximately $2.1 billion. Healthpeak will retain a 51% controlling stake in the partnership.

The joint venture includes 86 properties that are approximately 95% leased, giving Brookfield exposure to a sizable collection of established healthcare facilities with high occupancy levels.

For Healthpeak, the transaction comes as the company continues to concentrate its portfolio around outpatient medical buildings and life science properties. Earlier this year, the healthcare REIT separated its senior housing assets into an independent company, further narrowing its investment strategy toward healthcare delivery and research-oriented real estate.

As of the end of the first quarter, Healthpeak owned hundreds of outpatient medical and laboratory properties nationwide. The Brookfield partnership allows the company to unlock capital from part of that portfolio while maintaining operational control and a majority ownership position.

The size of the transaction also highlights growing institutional interest in medical office real estate. Properties tied to outpatient healthcare have attracted investors looking for relatively stable occupancy, long-term healthcare demand and tenants whose operations generally require specialized physical locations.

With Brookfield committing more than $1 billion to the partnership, the transaction represents another significant vote of confidence in medical outpatient real estate as a major institutional property sector.