AXA Investment Managers Real Assets has bought a $875m (£644m) portfolio of logistics properties in the US as part of plans to build a significant platform in the country.
The almost 8m sq ft portfolio has been acquired through a share purchase of a REIT previously managed by Cabot Properties, and comprises 27 assets in Chicago, Houston, Los Angeles, Central New Jersey, Dallas, South Florida, Southern New Jersey and Atlanta.
Cabot will retain a minority stake in the REIT and will remain as day-to-day manager of the portfolio.
The portfolio is 98% leased to 36 tenants, with an average unexpired lease term of 4.8 years. Based on current market rents, AXA said the portfolio presented a strong opportunity to capture considerable reversionary rent potential over time.
Steve McCarthy, head of North America at AXA IM – Real Assets, said: “This acquisition allows us to add significant scale to our US logistics platform in a single transaction that gives us exposure to eight of the 10 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.”
AXA IM – Real Assets now has a global logistics portfolio covering 41m sq ft of space in 10 countries with a total value of $3.5 bn.
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