AXA Investment Managers – Real Assets (AXA IM – Real Assets) has acquired a nearly 8 million s/f logistics portfolio for $875 million.
As part of its strategy to grow a U.S. wide logistics platform, the investment giant acquired the portfolio 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 45 percent of the total logistics supply in the U.S. All the assets are 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.
This transaction expands AXA IM – Real Assets’ global logistics portfolio to c. 41 million s/f in 10 countries with a total value of $3.5 billion.
Steve McCarthy, Head of North America at AXA IM – Real Assets, commented: “This acquisition allows us to add significant scale to our U.S. logistics platform in a single transaction that gives us exposure to eight of the ten largest logistics markets in America. It is in line with our broader strategy of investing in real estate asset classes that are supported by long term structural drivers, with logistics having been one of our long-term conviction calls for a number of years.
“The demand for modern logistics space has proven robust against the backdrop of the global pandemic which has accelerated the adoption of existing technology led trends including most notably the growth in e-commerce.”
Franz Colloredo-Mansfeld, CEO of Cabot Properties, commented: “We are grateful to our investors who partnered with us in the launch of this program five years ago. We look forward to working with AXA IM – Real Assets on the management of this outstanding portfolio.”