The global real estate equity investment arm of insurer AIG has formed a $1bn (€824m) US industrial joint venture with LB Asset Management, on behalf of three Korean institutional investors.

AIG Global Real Estate said it is co-investing in 8.6m sqft portfolio comprising of 86 industrial properties primarily located across the Southeast US worth more than a billion dollars.

The portfolio is 98% leased, as of the time of acquisition, and spans four industrial markets, including Virginia, Georgia, North Carolina, and Tennessee.

AIG Global Real Estate will be responsible for the management of the assets.

Doug Tymins, president and CEO, AIG Global Real Estate, said: “With continued in-migration and population growth driving the relocation of major business and research centers to the region, combined with the transformative impact of E-commerce, we are very excited for the prospects of the Southeastern industrial market.

“In partnership with LB Asset Management, we look forward to further expanding our industrial portfolio with this addition of high-quality assets in sought-after markets.”

Yun S Cho, managing director at LB Asset Management, said: “The portfolio is uniquely positioned in product type and geography and provides an opportunity to achieve immediate scale in the US industrial market.

“We are excited to leverage AIG Global Real Estate’s deep market expertise and look forward to further strengthening our partnership in the years to come.”

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