AXA IM Alts is to acquire a $2.05bn (€1.82bn) US logistics real estate portfolio in partnership with developer Dermody Properties.
A portfolio of 23 assets has been bought from Dermody Properties Industrial Fund II for $1.2bn, and a further nine additional assets are to be purchased for about $850m when construction is completed in 2022 and 2023.
Dermody Properties will continue to operate the assets on behalf of the joint venture.
On completion of both acquisitions, the portfolio will total approximately 8.47m sqft, comprising 32 assets, 65% of which were constructed within the past three years.
The assets are located in primary logistics hubs across 11 US industrial markets, including Inland Empire, Northern California, Seattle, Portland, Las Vegas, Chicago, Louisville, Atlanta, Eastern Pennsylvania, Northern New Jersey and Wilmington.
The portfolio has an average age of eight years and average building size of 208,000sqft, and includes modern facilities to suit a variety of potential occupiers.The majority of assets are within the range of 150,000sqft to 400,000sqft, which AXA IM Alts said is a part of the market experiencing the strongest leasing activity in the US.
The transaction will take AXA IM Alts’ exposure to US industrial real estate to $3.4bn and boost its global logistics platform to more than $8bn.
Steve McCarthy, head of North America at AXA IM Alts, said: “The quality and scale of the Dermody Properties portfolio, together with its resilient income profile and attractive geographical diversification, made it stand out as a particularly compelling investment opportunity.
“Logistics remains one of AXA IM Alts’ long-term conviction calls as demand for prime space shows no sign of abating thanks to structural shifts driven by the rapid growth of e-commerce and evolving changes to worldwide supply chains.”
Douglas A Kiersey, Jr, president of Dermody Properties, said: “We are very pleased to welcome AXA IM Alts as our partner as they expand their US portfolio.
“Dermody Properties’ strategic investments in infill industrial land in select US markets has allowed us to develop assets which enhance the distribution networks of our customers and in turn, optimise delivery times to the end consumer.”