Brookfield Asset Management Ltd. is experiencing a surge of capital inflows for its fifth flagship real estate fund, which focuses on acquiring distressed assets at discounts of up to 40 percent. In its first-quarter financial report, the firm revealed that it raised $5.9 billion in just the first three months of 2025, bringing the fund’s total commitments to approximately $16 billion. This milestone positions the fund as Brookfield’s largest real estate strategy ever raised.
The company is not finished yet. According to The Wall Street Journal, Brookfield aims to secure an additional $2 billion before the fund’s final close, potentially pushing the total even higher.
The news outlet added that Brookfield is finding success attracting institutional investors, pension funds, and endowments, as the New York-based firm targets distressed properties with its fund. Already, the pool has invested mainly in warehouses and apartments. This includes a portfolio of more than 2,000 San Francisco rentals and a European logistics property valued at more than $1.4 billion, both of which were acquired in 2024.
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Lowell Baron, chief investment officer of Brookfield’s real-estate group, noted to the WSJ that the costs of the assets bought are worth 20 percent to 40 percent less than their peak values, and below the replacement costs.
“We’re buying at much lower prices than we would have a few years ago,” he said.
The hope now for CRE investors is that the industry as a whole has hit bottom. Activity has hit a stalemate over the last couple of years due to high interest rates. Last year might be the signal that recovery is accelerating, as core capital fundraising tripled from 2023, according to a report from Cushman & Wakefield. That came as core asset IRR targets rose, with underwriting stabilizing in the fourth quarter of 2024.
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