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This is a nice way to start putting all that money raised to work….

-Brookfield Properties Corporation (NYSE: BPO; TSX: BPO) announced today that it has entered into a joint venture with Great Portland Estates (GPE) – a United Kingdom-based REIT – to acquire a 50% ownership interest in the 100 Bishopsgate partnership (“JV”) for $64 million (£43 million). The partnership is a 50:50 joint venture with all income, expenditures and capital costs to be shared equally.

The JV holds all of GPE’s Bishopsgate holdings in the City of London, forming the two-acre Bishopsgate development site (“the Site”). The Site, ideally located in the heart of the City, close to the Liverpool Street Station, currently houses 252,000 rentable square feet of existing buildings yielding approximately $11 million (£7.4 million) of net operating income from in-place leases.

This was bought into for an 8.5% cap rate, a good deal to be in this section of London. The even nicer aspect is there are still 570k sq. feet to be developed which means the eventual NOI from this will be materially higher than currently seen.

When people ask me if I am investing in CRE, I tell them yes, but I have very smart people do it for me…..

Full Filing:

BROOKFIELDPROPE6K (2)