Brookfield Asset Mgmt looks to emerging markets

Reuters

TORONTO, Nov 8 (Reuters) - Brookfield Asset Management Inc is ramping up its investment focus on emerging marketssuch as Brazil, India, and China, as it expects a recent flightto capital from those countries to produce bargains, thecompany's chief executive said On Friday.

Speaking after the Canadian power, real estate andinfrastructure investor reported third-quarter results onFriday, Chief Executive Bruce Flatt said emerging markets wouldlikely be a focus for the next year or two for the company.

"It certainly not the popular strategy today. There's been agreat deal of negative news from Brazil, India and China," hesaid.

"(But) we have found, based on our investment experience,that when capital becomes scarce in a sector of investment or aregion of investment, it often produces opportunities to buyassets that you would not have otherwise available."

Flatt noted that Brookfield followed the same strategy whenit loaded up on U.S. commercial real estate in the wake of the2008 financial crisis.

More recently, Brookfield, which manages $184 billion inassets, has been going after depressed assets in Europe.

Brookfield said its funds from operations (FFO), a measureof cash flow for real estate management companies, rose to $1.2billion, or $1.85 a share, from a year-earlier $223 million, or30 cents a share, driven by sales of real estate assets.

In September, Brookfield said it would acquire the 49percent of Brookfield Office Properties it does notalready own for $5 billion in a deal to consolidate thecompanies' $45 billion in real estate assets.

Shares of Brookfield fell 42 Canadian cents to C$40.95 onthe Toronto Stock Exchange.

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