PGIM is funding a $332 million loan while AXA expands its US industrial presence

PGIM Real Estate has provided a $332 million senior lending facility to a partnership between clients of AXA Investment Managers – Real Assets and Cabot Properties for the acquisition of 18 industrial properties across the United States as part of a 27 industrial portfolio acquisition assets were acquired.

In a significant step in its strategy to build a US-wide logistics platform, AXA acquired the 7,984,000 s/f portfolio for $875 million.

The portfolio was acquired through a stake purchase of a REIT previously managed by Cabot Properties, an international private equity real estate investment firm. Cabot will retain a minority interest in the REIT and continue to act as the day-to-day manager of the portfolio.

The portfolio consists of 27 high-quality modern assets spread across eight of the major logistics markets in the United States, including Chicago, Houston, Los Angeles, Central New Jersey, Dallas, South Florida, Southern New Jersey and Atlanta. Together, these local markets account for 45 percent of the total logistics offering in the US

All assets are located at major national and international transportation hubs that are mission critical for distribution companies. The portfolio is approximately 98 percent let to 36 tenants with an average remaining lease term of around 4.8 years.

This transaction expands AXA IM – Real Assets’ global logistics portfolio to 41 million square feet across 10 countries with a total value of $3.5 billion.

Brett Ulrich, Executive Director at PGIM Real Estate, co-initiated the loan with Christy Lockridge, Executive Director.

Lockridge commented, “This transaction presented us with an attractive opportunity to leverage a stable, recession-resistant portfolio with world-class sponsorship. Its diversification across markets and sub-types of industrial real estate will protect it from near-term market impacts due to COVID-19.”

Tenants include e-commerce and logistics companies, as well as companies from industries such as food distribution, food production and manufacturing.

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