Brookfield Properties has acquired Newland, one of the
nation’s biggest developers of master-planned communities, as the company
positions itself to capitalize on housing demand with the sector’s biggest
commodity – land.
The deal gives Brookfield control of Newland’s
coast-to-coast master-planned community portfolio of 20 active projects across
10 states to add to its own current 30-community land portfolio, creating a high-quality
land pipeline to expand its homebuilding operations.
“Adding Newland’s scale to our already robust mix as a fully
integrated land developer is another major step toward our long-term real
estate development growth goal,” said Adrian Foley, rookfield’s managing partner,
Real Estate and President, Development.
“As the public homebuilding market is searching for
controlled lot supply, and looking to the lot manufacturing business to provide
that service to support their expanding businesses, we see an innovative lot
sales process for the land assets and an operational skillset being rewarded
for the product it produces. We’re extremely excited to join forces with
Newland and bring this and other services to the homebuilding community across
“In addition, we aim to assemble a capital base to invest in
new land developments alongside Brookfield, and we see this as a very rewarding
proposition for ourselves and our future investment partners.”
Bob McLeod, former executive chairman at Newland, called the
sale a “game-changer” for both companies “with an enviable, advantageous
breadth of land holdings and operations.”
In addition to significantly widening Brookfield
Residential’s geographical footprint , the acquisition enhances its strategy to
grow its development business and capitalize on the high demand for land and
McLeod will take on a new role as Executive, Land
Investments at Brookfield Properties. Drawing on more than 50 years of
experience, he will provide strategic input into the company’s land acquisition
and investment strategy across the U.S.
The addition of Newland’s approximately 35,000 lots – in
addition to 8,500 multifamily apartments and 2,200 acres of commercial land –
places this portfolio with approximately 80,000 lots controlled in the U.S.
The combined footprint now spans across major real estate
markets, including Atlanta, Austin, Charleston, Dallas-Ft. Worth, Denver,
Hawaii, Houston, Greater Los Angeles area, Phoenix, Portland, Raleigh-Durham, San Diego, San Francisco/Bay
area, Seattle-Tacoma, Tampa, Washington D.C. and Wilmington.
Brookfield Residential has 30,000 lots controlled in the Canadian marketplace.
Access to additional land combined with Brookfield
Properties’ vast development capabilities in retail, multifamily and office
paves the way for the enormous growth of mixed-use master-planned communities.
Word that Brookfield Residential has reached agreement to
acquire Newland Communities’ coast-to-coast crown jewel master-planned
community portfolio, and its management company is a literal landscape-changer.
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