Brookfield Property infuse $5M in Allied Esports

Article posted by Coliseum, January 27^th, 2020

Image: Allied Esports Entertainment

The global esports entertainment venture – Allied Esports Entertainment – has declared that the global commercial real estate company Brookfield Property Partners (both entities are in US) will become a shareholder of the former through a $5M USD equity investment.

The retail business in the US is taking a nosedive as vacancies in the shopping malls just reached the highest rate of the millennial. In a 2017 research note, the leading financial services company Credit Suisse of USA had predicted that 20 to 25 percent of malls will shut shop by 2022. A recent study conducted by leading commercial real estate data source of US – Reis Moody’s Analytics – reveals that the current mall vacancy rate is 9.7 percent in the United States. Landlords are trying to thwart this trend by making experience a core focus of retail. Apart from retail stores, other attractions like theme parks and aquariums are expected to bolster foot traffic in these enormous centers.

Looking at the grim scenario of the retail business, American real estate firm and mall owner Brookfield Property Partners will invest in esports in a bid to give a shot in the arm to foot traffic.

Allied Esports’ on-mall esports venue concept will be added to Brookfield Property’s existing retail destinations.

Allied Esports Entertainment has cashed in on the opportunity of this trend and has developed an on-mall esports venue concept following a $5M infusion by Simon Property Group of US too. The collaboration will bring esports venues into the fold of the commercial real estate company which includes the recently announced esports venue in the Mall of Georgia in Buford, US, which will open in the second half of 2020.

Both Brookfield and Simon Property Group are listed on the Nasdaq and the terms of the agreement will be detailed in AESE’s next Form 8-K filing with the U.S. Securities and Exchange Commission (SEC).

As part of its tactical investment plan, Allied Esports will bring its on-mall esports venue concept to Brookfield Property Partners (BPY’s) existing retail destinations. The two companies will join forces in relation with the development of dedicated esports venues and gaming experiences.

The whole concept will be designed for tournament play of all levels, with PCs and consoles available for daily use, complete broadcast and streaming production capabilities, full food and beverage options, and experiential retail.

A release sent out quoted Frank Ng, CEO of Allied Esports Entertainment, as saying, “As esports continues a pattern of tremendous growth, infrastructure and the creation of live, in-person experiences for gamers of all levels will become paramount to the overall ecosystem and the communities that are being developed.”

“Retail locations like shopping malls are the perfect foundation for this industry innovation and we’re excited to expand our on-mall presence with a global leader like Brookfield Properties,” the release further quoted Frank Ng as saying.

Allied Esports’ new on-mall concept has been devised to harmonize its flagship location, HyperX Esports Arena Las Vegas, as well as additional brick-and-mortar and mobile facilities around the world that are part of the Allied Esports Property Network.

Continue to follow Coliseum for latest updates on venues business news. Coliseum is dedicated towards building the best global community of sports and entertainment venue executives and professionals creating better and more profitable venues.