According to sources familiar with the matter, Brookfield Asset Management Ltd (BAM.US) is in advanced negotiations with Singapore sovereign wealth fund GIC to acquire manufactured housing operator Yes! Communities at a valuation exceeding $10 billion. If completed, this would represent one of the largest real estate acquisitions since 2022.
The Canadian investment giant, which manages approximately $1 trillion in assets, has been engaged in negotiations for several months. While sources indicate progress in talks, no agreement has been signed and the deal could still fall through. Both Brookfield and GIC declined to comment, while Yes! did not respond to media inquiries.
**Betting on Affordable Housing**
The acquisition of Yes! would mark one of Brookfield's largest entries into the US residential real estate market, demonstrating confidence in the American economy amid some indicators suggesting economic deceleration. The transaction would also deepen Brookfield's presence in the affordable housing sector, where supply shortages are expected to drive continued rent increases in coming years.
Denver-based Yes! operates approximately 300 communities across the Midwest and Southeast, housing tens of thousands of factory-built homes. These properties serve as a crucial source of affordable housing, particularly valuable as elevated borrowing costs constrain new construction of single-family homes and apartments.
**Real Estate Strategy**
Brookfield has been intensifying its real estate activities, citing improved capital market sentiment and enhanced liquidity. Since early 2024, the company has invested over $10 billion in residential real estate, with the majority located in the United States. The firm has also capitalized on rising rents, recently selling a mobile home portfolio for $1.6 billion.
The company's global real estate portfolio already includes prominent assets such as London's Canary Wharf and office and residential towers in New York. Beyond large commercial projects, Brookfield leverages its long-held land holdings to develop premium residential communities in states like California.
**Yes! Communities Development History**
Yes! was established in 2007 and experienced rapid growth during the post-2008 financial crisis period, acquiring manufactured housing assets from companies including Clayton Homes under Berkshire Hathaway. Its properties typically consist of modest single-story homes with small yards. Customers can lease units or gradually purchase properties while continuing to rent the underlying land.
GIC acquired Yes! in 2016 and has since been considering disposal options for the business, including a potential public listing. The sale to Brookfield Asset Management would represent one of the largest recent bets on the US housing market, highlighting investor interest in affordable housing solutions amid persistent supply constraints.