CORRECTION, 8/9/13, 11:30 a.m. EDT: This article originally misspelled the name of MoFo partner Remmelt Reigersman. We regret the error.
UPDATE, 8/8/13, 6:30 p.m. EDT: The names of Alston & Bird attorneys working on the deal have been added to the final paragraph.
Commercial real estate company Brookfield Property Partners said Wednesday it will pay $1.1 billion to acquire Atlanta-based industrial real estate company Industrial Developments International from the U.S. subsidiary of Japan's Kajima Corporation.
Brookfield Property Partners—which is based in Hamilton, Bermuda—said in its announcement of the transaction that it will end up owning roughly 25 percent of IDI, with the remainder of the company to be owned by Brookfield Property Partners's institutional partners. Brookfield Property Partners was formed last year as part of a real estate joint venture between Toronto-based Brookfield Asset Management and Dallas-based Hillwood Development. Brookfield Property Partners was spun off by its Canadian parent in April, although Brookfield Asset Management still owns more than 92 percent of the unit.
The deal for IDI, which is expected to close in the fourth quarter of this year, is part of a $4.4 billion fund raised by Brookfield Asset Management earlier this year to buy commercial real estate. Brookfield Property Partners was the fund's largest investor, putting in approximately $1.3 billion, according to Bloomberg.
IDI owns and operates 75 industrial distribution facilities, all in the United States, totaling 27 million square feet. Brookfield Property Partners says the acquisition will increase its industrial property portfolio to 62 million square feet, with an additional 79 million square feet available for future development.
Weil, Gotshal & Manges is advising Brookfield Property Partners on the acquisition with a team led by M&A partners Philip Rosen and Shayla Harlev in New York and Boston, respectively. Real estate partner Samuel Zylberberg, technology and IP transactions partner Charan Sandhu, tax partner Scott Sontag, executive compensation and benefits partner Michael Nissan, environmental partner Annemargaret Connolly, regulatory partner Patrick O'Toole, and executive compensation and benefits counsel Steven Margolis are also advising. Associates on the deal are Andrea Bidegaray, Joshua Gelfand, Gabriel Gershowitz, R. Todd Hatcher, Kyle Junik, David Laibstain, and Melissa Meyrowitz.
Weil also advised the client's parent company, Brookfield Asset Management, on last year's joint venture with Hillwood. As The Am Law Daily has previously reported, Weil has close ties to Brookfield, having represented the company and its various affiliates on a number of past deals, including Brookfield Office Properties's 2011 purchase of the remaining 49 percent stake in Manhattan's Four World Financial Center it did not already own from Bank of America.
Morrison & Foerster is representing Kajima on the sale with a team that includes New York–based corporate partners Jeffery Bell and Spencer Klein, as well as corporate senior counselor Ko-Yung Tung. Tax partner Remmelt Reigersman and real estate of counsel Douglas Krohn are also working on the matter, along with associate Jinyoung Choi.
MoFo's past work for Kajima includes advising the company on its sale of the Hualalai Resort in Hawaii in 2006 for more than $500 million.
Meanwhile, IDI has turned to Alston & Bird as its legal counsel on the deal. Atlanta-based real estate partner James "Jay" Farris Jr. is leading a team from the firm that also includes tax partner Jennifer Weiss, executive compensation partner Laura Thatcher, and labor and employment partner Clare Draper.