Global asset manager TPG has acquired a 75% stake in a C$1.3bn (€888m) industrial park portfolio in Canada owned by Oxford Properties.
TPG, investing on behalf of a fund managed by its real estate arm, has acquired the majority interest in Brampton Business Park and Vaughan Business Park, Oxford’s two industrial business parks in the Greater Toronto Area (GTA).
Oxford will retain the remaining 25% interest in the assets and will continue to manage the fully leased 5.1m sqft portfolio.
Jacob Muller, partner at TPG, said: “We see the GTA as one of the most attractive industrial markets globally, with strong real estate fundamentals and population and employment growth outpacing many major US markets.
“We have followed the Canadian industrial sector for several years, and believe this joint venture provides a unique opportunity to enter the market at scale through the acquisition of some of the highest quality industrial assets in all of Toronto.”
Jeff Miller, head of North American industrial at Oxford Properties, said: “Attracting a partner of TPG’s calibre to our Canadian portfolio speaks not only to the quality of these assets, but also the value generated by our active asset management which has improved these assets over time and brought them to full occupancy.
“With this transaction, we generate significant capital to reinvest back into Ontario, which includes 3m sqft of new GTA industrial developments we are set to deliver by 2026.”
Milos Dajic, vice president of investments at Oxford Properties, said: “The GTA remains one of the best performing industrial markets in North America, and, as of Q3 2023, enjoys a sub 2% availability rate. It remains a high barrier to entry market, with new construction representing less than 2% of the existing stock.
“This bolsters our long-term conviction in this market, which has helped to attract a likeminded investor such as TPG.”
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