Safehold Inc. announced that it 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 non-controlling 49% interest in the venture at a gross valuation of approximately $348 million.

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. The venture is expected to be consolidated on Safehold's financial statements and Brookfield's investment will be recognized as an equity non-controlling interest.

Safehold will use net proceeds for debt repayment and general corporate purposes. Eastdil Secured, L.L.C. and BofA Securities acted as advisors to Safehold.