Billionaire Strikes Strategic $3B CRE JV With AECOM

A strategic alliance between Eldridge Industries and AECOM Capital brings a $3B investment into distressed properties amid market-wide challenges.
May 7, 2024
Billionaire Strikes Strategic $3B CRE JV With AECOM
  • Eldridge Acre Partners, the JV’s new investment entity, plans to strategically target distressed properties.
  • AECOM Capital’s $1B in assets will be under EAP’s management, diversifying investments in CRE and infrastructure projects.
  • Todd Boehly’s vast holdings and global connections, including the UK’s Cain International, create a network of varied investments impacting global CRE.
Key Takeaways

Eldridge Industries and AECOM Capital ally to inject $3B into U.S. CRE, focusing on distressed properties in a tightening capital market.

$3B strategic partnership

Eldridge Industries, led by Billionaire Todd Boehly, will collaborate with AECOM Capital to inject $3B into U.S. CRE over the next five years, with a focus on distressed properties lacking sufficient funding in the current capital market.

Eldridge Acre Partners, the new investment entity, aims to capitalize on opportunities that usually thrive in times of distress. They plan to leverage subordinated equity positions or typical equity investments, especially in industrial, student housing, and mixed-use developments.

Leveraging existing assets

EAP will oversee the roughly $1B AUM of AECOM Capital, broadening the JV’s investment scope. With a diverse portfolio covering CRE and infrastructure projects, Eldridge Industries brings its expertise to manage and enhance existing assets.

Todd Boehly’s vast holdings, including Beverly Hilton, DraftKings, and the LA Dodgers, among others, create a powerful backdrop for this strategic collaboration. Forbes estimates Boehly’s net worth at around $6.1B.

Global connections, diversified investments

Boehly’s international reach extends further as UK’s Cain International merges with Blackbrook Capital. Both firms have ties to Boehly, who also owns a stake in Chelsea FC, portraying a web of interconnected global investments under his umbrella.

As these significant financial moves unfold, industry observers will closely watch the impact of Boehly’s ventures and how they shape the CRE investment landscape.

Why It Matters

The collaboration between Todd Boehly’s Eldridge Industries and AECOM Capital signals significant confidence in U.S. CRE despite a still-hawkish Federal Reserve. With a diverse portfolio under Boehly’s umbrella and the expanded expertise brought to the JV by both parties, anticipate some acquisition headlines in the coming months.

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