Oxford Properties Group has acquired 14.5 million square feet of U.S.-based infill light industrial space from the global investment firm, KKR. The USD $2.2-billion (CAD $2.7 billion) deal involves 149 warehouse/distribution buildings located in 12 major metropolitan markets, and is slated to closer later this year.
“The acquisition serves as a launch pad for Oxford’s light industrial business, which perfectly complements our big box development platform, IDI Logistics,” says Ankit Bhatt, vice president, investments, with Oxford Properties. “Growing our U.S. industrial business is one of Oxford’s highest conviction global investment strategies.”
“As a result of this transaction, and recent activity in the sector, we are rapidly closing in our stated goal to have one-third of our global equity deployed into the industrial asset class,” affirms Chad Remis, executive vice president for North America.
This is Oxford’s fifth notable foray into the global industrial sector in the past 30 months, which include: acquisitions of IDI Logistics and Lineage Logistics in the U.S.; a major stake in the IPO for the Asian logistics real estate platform, ESR Cayman; and acquisition of the European logistics investment and asset manager, M7 Real Estate.
The subject properties from KKR offer close proximity to major supply chain hubs and transportation networks in high-growth markets including the Inland Empire, Dallas, Atlanta, Phoenix, Chicago, Houston, Tampa, Orlando, San Diego and the Baltimore-Washington corridor. “Having previously been a mezzanine lender on the portfolio acquired from KKR, we have a high degree of conviction on the growth potential of these assets,” Remis notes.
”High quality, infill, consumption-driven industrial portfolios of scale trade infrequently, so this transaction is an important next step for Oxford to build a large scale industrial business in the U.S.,” Bhatt adds.