Joint VentureJun 12, 2026, 07:06 AM
Safehold Forms JV with Brookfield for Ground Leases; $348M Valuation
AI Summary
Safehold Inc. announced the formation of a joint venture with a Brookfield affiliate involving a portfolio of diversified ground leases. Brookfield will acquire a non-controlling 49% interest in the venture at a gross valuation of approximately $348 million. Safehold will retain day-to-day control and management of the assets, with the venture expected to be consolidated on its financial statements. The net proceeds from the transaction will be allocated towards debt repayment and general corporate purposes.
Key Highlights
- Safehold formed a joint venture with a Brookfield affiliate on a portfolio of ground leases.
- Assets contributed by Safehold generate approximately $14 million in current annualized cash ground rent.
- Brookfield will purchase a non-controlling 49% interest in the venture.
- The gross valuation for Brookfield's interest is approximately $348 million.
- Safehold retains call options to repurchase Brookfield's interest starting after year 7.
- Safehold will maintain day-to-day control and management of the assets.
- The venture is expected to be consolidated on Safehold's financial statements.
- Net proceeds will be used for debt repayment and general corporate purposes.
Price Impact
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