Crow Holdings has formed a joint venture with Allianz Real Estate through the direct sale of a 49% stake in a 19-asset, 6.1 million-square-foot U.S industrial portfolio developed by Crow Holdings.
Allianz and Crow Holdings will own and complete development of the 6.1m sq ft. build-to-core portfolio, consisting of 19 newly-constructed industrial assets, anchored by a logistics park located between Dallas and Fort Worth. The remainder of the portfolio is concentrated in prime locations in Chicago, Dallas, Houston and Southern California. Further to the strategic locations, five of the 19 assets are in different stages of development.
The properties in the portfolio were constructed from the ground up by Crow Holdings beginning in 2014.
“Partnering with Crow Holdings – a trusted partner for several years on both the debt and equity side – allows us to grow alongside a developer that understands the dynamics and needs of the U.S. market,” said Christoph Donner, CEO of Allianz Real Estate of America. “Allianz remains focused on long term opportunities making this investment an excellent fit for our portfolio. Crow Holdings’ decades of experience and track record give us the confidence to further expand our joint platform.”
”To put it in perspective, for each US$1bn in incremental e-commerce sales growth there is a need for 1.25m square feet in distribution space.”
“If one segment of real estate has clearly benefited from the pandemic it has been logistics. To put it in perspective, for each US$1bn in incremental e-commerce sales growth there is a need for 1.25m square feet in distribution space. The U.S. warehouse inventory reserve additionally needs between 700m-1bn square feet to keep up with demand for space. We believe the logistics segment, which has been an area of considerable focus for Allianz Real Estate in the U.S., Europe and Asia, will remain resilient due to strong, persistent market fundamentals, the continued expansion of e-commerce and consumer delivery demand, and supply chain rationalization,” said Karen Horstmann, Head of Acquisitions, Allianz Real Estate of America.
Allianz Real Estate said tenant demand has grown largely due to U.S. consumers’ migration from bricks-and-mortar retail to e-commerce, a fundamental trend that has accelerated significantly during 2020’s Covid-19 pandemic.
“By analyzing tenant demand patterns in major U.S. logistics hubs, Crow Holdings successfully assembled and developed this long-term, build-to-core portfolio of high-quality industrial properties. We continue to build upon our strategy of establishing trusted partnerships with premier institutions to capitalize on the long-term secular growth of e-commerce. We are excited to partner with Allianz Real Estate, a top-tier global investor that shares our confidence in the U.S. industrial real estate sector, on this venture,” said Michael Levy, Chief Executive Officer of Crow Holdings.