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AIG buys $1B logistics portfolio

(Credit: Interlake Mecalux)

AIG Global Real Estate has acquired an 8.6-million-SF, industrial portfolio from Partners Group + Equus Capital Partners for over $1 billion, , IPE first reported. The deal includes 74 light industrial facilities and 14 Class A bulk buildings, which primarily serve distribution tenants in the e-commerce supply chain.

Portfolio breakdown: The logistics portfolio spans five key markets in the Mid-Atlantic and the Southeast, and was 98% occupied at the time of the transaction.

  • The Mid-Atlantic portion consists of nine buildings in Virginia totaling 3.5 million SF. 
  • The Southeast component consists of a 2.6 million-SF collection of 52 buildings at six business parks in Raleigh-Durham, N.C., and a 19-building industrial park totaling 1.2 million SF in Roswell, GA. 
  • An additional four buildings encompassing an aggregate 1.3 million SF near Nashville in Portland, Tenn.

Tip your cap: Structural tailwinds from the e-commerce sector are very strong, and demand has only accelerated since the onset of COVID. The exit represents a return in excess of 2x for their initial investment three years ago.

Heard on the Street: Partners Group’s Jessica Wichser, Global Head Asset Management: “This Portfolio generated strong demand from buyers due to its strategic geographic positioning, strong operating fundamentals, diversified tenant base and long-term tenant appeal. During our holding period, we navigated the Portfolio through market disruptions caused by the Covid-19 pandemic, and adopted an entrepreneurial governance approach that allowed us to execute on our transformational investment strategy and maximize potential cashflows, fueling the Portfolio’s growth and securing sustainable returns for our investors.” [IPE]

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