August 7, 2013 / 12:13 PM / in 5 years

Brookfield Property to buy U.S. warehouse business from Japan's Kajima

(Reuters) - Canada’s Brookfield Property Partners LP (BPY_u.TO) BPY.N said it will buy a privately held U.S. real estate company from Japan’s Kajima Corp (1812.T) in a $1.1 billion deal that will increase its industrial real estate portfolio.

The deal, Brookfield Property Partners’ second in less than two months, will increase the size of its industrial real estate portfolio to over 62 million square feet (5.6 million square meter) of operating assets.

Brookfield Property Partners said on Wednesday that it would own about 25 percent of Industrial Developments International Inc, with the rest owned by Brookfield’s institutional partners.

Brookfield Property bought British logistics warehouse developer Gazeley from Dubai World subsidiary Economic Zones World for an undisclosed sum in June.

Brookfield Asset Management (BAMa.TO) spun off subsidiary Brookfield Property Partners in April. The new unit holds substantially all of the commercial property assets previously held by Brookfield Asset.

Atlanta-based IDI owns and operates 75 warehouses totaling 27 million square feet in North America. It also has 49 million square feet of future development projects.

Brookfield expects the deal, which will add more than 79 million square feet of future development potential, to complete in fourth quarter of 2013.

Reporting by Krithika Krishnamurthy in Bangalore; Editing by Joyjeet Das

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