AXA Investment Managers – Real Assets announces that it has taken a significant step in its strategy to grow a U.S. wide logistics platform having completed, on behalf of clients, the acquisition of a c. 7,984,000 sq ft portfolio for c. $875 million (€720 million). The portfolio has been acquired through a share purchase of a REIT previously managed by Cabot Properties, an international private equity real estate investment firm. Cabot will retain a minority stake in the REIT and will remain as day-to-day manager of the portfolio.
The portfolio comprises 27 high-quality modern assets spread across eight of the key logistics markets in the U.S. including Chicago, Houston, Los Angeles, Central New Jersey, Dallas, South Florida, Southern New Jersey and Atlanta. Together these local markets account for c. 45% of the total logistics supply in the U.S. All the assets are strategically positioned within major national and international transportation hubs that are mission critical for distribution operators. All assets boast strong connectivity and access to population centers. The portfolio is approximately 98% leased to 36 tenants, with an average unexpired lease term of approximately 4.8 years. Based on current market rents, the portfolio presents a strong opportunity to capture considerable reversionary rent potential over time.
Source : AXA Investment Managers – Real Assets