Guggenheim Investments has acquired a $900m (€808m) US industrial and office properties portfolio from ElmTree Funds.
Announcing the deal, real estate private equity manager ElmTree said it has sold a majority stake in the 18-property portfolio of predominantly industrial and office properties.
ElmTree will continue to manage the portfolio and retain a minority equity stake.
ElmTree said it first began acquiring and developing these net lease properties, located in fast-growing metropolitan areas across, in 2016.
James Koman, CEO and founder of ElmTree Funds, said: “As the uncertain rate environment continues, pensions and other institutional investors have demonstrated a deep appetite for current and predictable income streams.
“The yields we’re seeing from real estate leased to investment grade tenants provide a compelling alternative to corporate equivalent bond yields while offering potential upside.”
Jennifer Marler, senior managing director and head of real estate at Guggenheim Investments, said: “We are delighted to partner with ElmTree and benefit from its differentiated approach to commercial real estate in our pursuit to drive value for our clients.”
