TPG invests C$1.3bn in Oxford’s GTA industrial business parks

Oxford will continue to manage the 5.1 million square-foot portfolio

TPG invests C$1.3bn in Oxford's GTA industrial business parks

TPG has acquired a 75% interest in Oxford Properties Group’s two Class-A industrial business parks in the Greater Toronto Area (GTA) for C$1.3 billion.

The acquisition was made through the formation of a new joint venture with Oxford.

Oxford has retained a 25% interest in the assets, Brampton Business Park and Vaughan Business Park,and will continue to manage the 5.1 million square-foot portfolio.

The joint venture, which is the first between TPG and Oxford, represents one of the largest private industrial real estate transactions in Canada to date.

TPG Real Estate, TPG’s diversified real estate investment platform, is acquiring the properties through its dedicated real estate equity fund series.

The properties are located in market-leading distribution nodes in the GTA, accessible by several highways and close to intermodal yards, labor, and airports. Each business park includes five buildings, spanning approximately 2.9 million square feet in Brampton and approximately 2.2 million square feet in Vaughan. The fully leased portfolio is bolstered by a roster of high-quality tenants with strong credit, including Mondelez, Best Buy, Campbells, and Olympia Tile, among others, and benefits from longer-term leases.

Jacob Muller, Partner at TPG, commented: “We see the GTA as one of the most attractive industrial markets globally, with strong real estate fundamentals and population and employment growth outpacing many major U.S. markets. We have followed the Canadian industrial sector for several years, and believe this joint venture provides a unique opportunity to enter the market at scale through the acquisition of some of the highest quality industrial assets in all of Toronto. We are excited to partner with the Oxford team, which has a distinct track record in the space and deep local expertise, to support the properties and grow a leading industrial portfolio.”

Jeff Miller, Head of North American Industrial at Oxford Properties, commented: “Oxford is a long-time believer in Canadian Industrial, where we have built up a phenomenal portfolio over the past 15-plus years, and we continue to see strong underlying fundamentals within this asset class. Attracting a partner of TPG’s calibre to our Canadian portfolio speaks not only to the quality of these assets, but also the value generated by our active asset management which has improved these assets over time and brought them to full occupancy.

“With this transaction, we generate significant capital to reinvest back into Ontario, which includes 3 million square feet of new GTA industrial developments we are set to deliver by 2026. We look forward to working together with TPG to create long-term value in the portfolio on behalf of our respective stakeholders.”