NEW YORK CITY AND DALLAS – CBRE Investment Management has agreed to acquire a portfolio of logistics real estate assets in the United States and Europe from Hillwood Investment Properties, a Dallas-based industrial developer and landlord.
Under the terms of the $4.9 billion acquisition agreement, subsidiaries of New York-based CBRE Investment Management will purchase Hillwood’s 57-property, 28.4 million square foot portfolio. The transaction is subject to customary closing conditions and CBRE Investment Management expects to close the assets in stages.
The portfolio includes 33 properties in the United States totaling 19.2 million square feet and 24 assets in Germany, Poland and the United Kingdom totaling 9.2 million square feet.
“This landmark transaction reflects our ability to leverage the strong financial strength of our parent company to capture exciting opportunities that help develop strategic real asset solutions for our clients,” said Chuck Leitner, CEO of CBRE Investment Management. . “Backed by a $35 billion AUM global logistics platform and a qualified team with deep domain expertise, we are positioned to be one of the world’s leading investors and operators of logistics assets.”
The portfolio is one of several multi-market portfolio transactions in the industrials sector in recent weeks. Recent deals include Ares Management Corp. purchasing a 1.5 million square foot portfolio from Molto Properties; Dermody Properties sells a portfolio of 32 properties of 8.5 million square feet to alternative investor AXA IM Alts; and Faropoint buying a portfolio of 10 properties in northern New Jersey from Kushner Cos.
The US industrial sector has performed remarkably well in recent years despite the disruption caused by the COVID-19 pandemic. According to Colliers research, seven major industrial markets in the United States currently have vacancy rates below 4%, including Los Angeles, New York, Philadelphia and Columbus, Ohio.
CBRE Investment Management, a subsidiary of the Dallas-based CBRE Group, is one of the world’s leading real-asset investment management companies with $133.1 billion in assets under management as of the third quarter of 2021. The firm operates in more than 30 offices and 20 countries around the world. .
Hillwood Investment Properties, a Perot company, is a real estate developer, investor and advisor specializing in Class A industrial properties in 52 markets in the United States and Europe. The company was founded in 1998 as a platform to develop and acquire properties outside of its planned flagship campus, AllianceTexas in Fort Worth, Texas.
— John Nelson