• The joint venture aims to focus on acquiring multi-tenant warehouses with an area of up to 7 million square feet, spread over more than 32 properties and accommodating 1,100 tenants in 9 markets.
• The majority of the properties were financed with Commercial Real Estate Mortgage-Backed Securities (CMBS) and Revolving Acquisition Facilities, and the financing is managed by Goldman Sachs & Company
The global alternative investment company Arcapita Group Holdings (“Arcapita”) and the Arden Group, which specializes in real estate investments in the United States of America, announced the establishment of a joint venture to acquire multi-tenant industrial properties in urban centers in major American markets. The joint venture has completed, as a first stage, the closing of real estate acquisition deals worth more than $550 million, and is working on acquiring additional real estate in the near term worth $250 million as part of plans to grow the total value of the portfolio’s assets to $2 billion, distributed in the largest 25 US industrial markets.
Arcapita and Arden for the joint venture have allocated an initial portfolio of approximately five million square feet across more than eighteen industrial parks in seven US markets in Atlanta, Charlotte, Columbus, Dallas, Houston, Philadelphia and Indianapolis.
Commenting on this, Atif Ahmed Abdulmalik, CEO of Arcapita Group, said: “This joint venture is part of our two strategies for investing in industrial real estate, as we have previously acquired industrial and logistics real estate deals around the world worth about $5.5 billion. Industrial real estate in the United States for about twenty years. We are pleased to partner with the Arden Group and to put this highly diversified portfolio within the reach of our investors.”
On the other hand, Craig A. Spencer, Chairman and CEO of the Arden Group, said: “Our group has adopted a strategy to invest in this distinct segment of the industrial real estate sector, which generates attractive returns for investors, and we are pleased to work alongside our trusted strategic partner Arcapita Group, who shares our long-term vision for this category of real estate. assets.”
It is worth noting that this joint venture aims to invest in warehouses in semi-finished markets that have a very low volume of new real estate on the market due to the scarcity of undeveloped land near urban centers. It is expected that rental prices will continue to rise in the multi-tenant real estate segment, which supports the continued growth in demand for all segments of logistics real estate. The operating base of the joint venture aims to build a portfolio of volume in a market characterized by fragmented real estate ownership that is decentralized to this asset class.
Shayk Godard, President and Chief Investment Officer, Arden Logistics Parks, said: “The semi-complete market facilities are vital to the supply chain in the United States, and their importance has increased as a result of the accelerating growth of logistics and trade services. Strong demand from a diverse and growing tenant base in the United States by providing high quality facilities in strategic locations.”
“The overall US industrial real estate market is benefiting from long-term favorable factors and sustainable capital inflows, leading to a growing and sustainable demand for the multi-tenant segment,” said Brian Heep, Managing Director and Head of the US Real Estate Investment Team at Arcapita Group. The joint venture’s asset pooling strategy allows us to be able to carve out a significant share of this highly fragmented market.” He said: “We look forward to combining Arcapita’s long-standing investment experience in global industrial real estate and the expertise of the Arden Group’s superior management team to grow this real estate platform for the long term. the long”.
It should be noted that Arcapita obtained legal advice from Gibson and Dunn & Crutcher, while the Arden Group obtained legal advice from Cozen O’Connor, while Jones Lang LaSalle Securities provided financial advice to the Arden Group in connection with the investment transaction, and provided the joint venture services Financial advice, loans and capital financing services.