Global global private equity firm Partners Group has sold a portfolio of US industrial properties, on behalf of its clients, for over $1 billion to an undisclosed buyer.
The portfolio has a combined leasable area of 8.6 million square feet and consists of 88 industrial properties primarily located across the Mid-Atlantic and Southeast regions of the US, including Atlanta, Nashville, Norfolk, Raleigh-Durham and the Shenandoah Valley, near Washington DC.
The properties include 74 light industrial buildings and 14 Class A bulk industrial buildings, which primarily serve distribution tenants in the e-commerce supply chain.
“Partners Group built this portfolio of quality assets across attractive industrial markets, gaining exposure to key transformative trends, such as the rise of e-commerce and relatively outsized expansion of regional growth cities. We are proud to see the transformational results of the work we have done during the past three years and believe this exit represents an excellent outcome for our clients. We continue to see relative value in the industrial sector and, in particular, we have conviction in last-mile distribution facilities, smaller urban logistics warehouses and cold storage facilities, which are supported by resilient structural market trends,” said Ron Lamontagne, Managing Director, Co-Head Private Real Estate Americas, Partners Group.
“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,” added Jessica Wichser, Global Head Asset Management, Private Real Estate, Partners Group.