Safehold Forms Joint Venture with Brookfield, Valued at Approximately $348M
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 U.S. and generate current annualized cash ground rent of approximately $14M. Brookfield will purchase a non-controlling 49% interest in the venture at a gross valuation of approximately $348M. Safehold will retain a series of call options beginning after year 7 to repurchase Brookfield's interest. Under the terms of the agreement, Safehold will maintain day-to-day control and management of the assets. Brookfield's investment will be recognized as an equity non-controlling interest. Safehold will use net proceeds for debt repayment and general corporate purposes.
