Safehold has formed a joint venture with a Brookfield affiliate on a portfolio of ground leases.
The assets contributed by Safehold are diversified across the United States and generate current annualized cash ground rent of approximately $14 million. Brookfield will purchase a noncontrolling 49 percent interest in the venture at a gross valuation of approximately $348 million. Safehold will retain a series of call options beginning after year seven to repurchase Brookfield’s interest.
Under the terms of the agreement, Safehold will maintain day-to-day control and management of the assets. The venture is expected to be consolidated on Safehold’s financial statements, and Brookfield’s investment will be recognized as an equity, noncontrolling interest. Safehold will use net proceeds for debt repayment and general corporate purposes.
“This joint venture creates several
