PGIM Real Estate has provided a $332 million senior loan facility to a partnership between clients of AXA Investment Managers – Real Assets and Cabot Properties for the acquisition of 18 industrial properties located throughout the U.S. acquired as part of a 27-asset industrial portfolio acquisition.
In a significant step in its strategy to grow a U.S. wide logistics platform, AXA acquired the 7,984,000 s/f portfolio for $875 million.
The portfolio has been acquired 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. The portfolio is approximately 98 percent leased to 36 tenants, with an average unexpired lease term of approximately 4.8 years.
This transaction expands AXA IM – Real Assets’ global logistics portfolio to 41 million square feet in 10 countries with a total value of $3.5 billion.
Brett Ulrich, executive director at PGIM Real Estate, co-originated the loan with Christy Lockridge, executive director.
Lockridge commented, “This transaction presented us with an attractive opportunity to lend on a stable recession-resilient portfolio with best-in-class sponsorship. Its diversification across markets and industrial property subtypes will cushion it against near-term impacts on the market stemming from COVID-19.”
Tenants include e-commerce and logistics firms, as well as companies in industries such as food distribution, food production, and manufacturing.