An affiliate of Abu Dhabi Investment Authority and Public Sector Pension Investment Board (PSP Investments) have jointly acquired a portfolio of core industrial properties held by Exeter Property Group. The deal, priced at US$3.15 billion, will see Exeter, a U.S. real estate investment management firm, invest in the joint venture and continue to manage the acquired assets. The portfolio consists of 209 U.S.-based industrial properties, most of which are bulk warehouses that support retailers, suppliers and wholesalers. Montréal-based PSP Investments has $112 billion of managed assets.
Exeter Sells 58 Million Square Foot US Industrial Portfolio to PSP Investments / ADIA Joint Venture For $3.15 Billion
December 17, 2015
NEW YORK–(BUSINESS WIRE)–In one of the largest industrial real estate transactions of the year, a joint venture of Henley Holding Company, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and the Public Sector Pension Investment Board (PSP Investments), one of the largest Canadian pension investment managers, today closed on the acquisition of a 58 million square foot portfolio of core industrial properties held by investment funds owned and managed by industrial property specialist Exeter Property Group for $3.15 billion. Exeter invested in the joint venture and will also continue to manage the purchased properties.
The portfolio, located in 25 key distribution markets throughout the United States, consists of 209 high-quality industrial assets, most of which are modern bulk warehouses that provide critical infrastructure supporting both e-commerce and traditional retailers, suppliers and wholesalers.
“We are very pleased to have concluded the sale of this exceptional portfolio of industrial properties on behalf of our investors. ADIA and PSP Investments are two of the most highly-regarded international real estate investors, and we are thrilled to work with our new partners in the continued successful management of these properties as well as in other opportunities in the United States and abroad,” said Ward Fitzgerald, Chief Executive Officer of Exeter.
“We have great confidence in the growth potential of the US industrial sector, particularly in high-quality properties that meet the evolving logistical needs of traditional and omnichannel businesses,” said Tom Arnold, Head of Americas Real Estate at ADIA. “The Exeter portfolio fits well into our long-term real estate investment strategy, and we are pleased to have both Exeter and PSP Investments as our partners.”
“PSP Investments is pleased to have secured this attractive and complex investment opportunity, demonstrating our agility and capacity to move quickly alongside great partners,” said Neil Cunningham, Senior Vice President, Global Head of Real Estate Investments at PSP Investments. “This investment is consistent with PSP Investments’ real estate strategy to make direct investments in sizeable, core industrial assets in key markets alongside experienced partners who share our long-term investment horizon,” he added.
Exeter Property Group was represented by Fried, Frank, Harris, Shriver & Jacobson LLP and Silverang, Donohoe, Rosenzweig & Haltzman, LLC. ADIA was represented by Kirkland & Ellis LLP, and PSP Investments was represented by Davies Ward Phillips & Vineberg LLP and Torys LLP.
The portfolio was marketed by Eastdil Secured and CBRE.
With $5.3 billion in assets under management, Exeter is a privately-held real estate investment management firm specializing in the acquisition, development, leasing, and management of industrial properties across the U.S. and Europe through a number of investment funds, separate accounts and private equity investment vehicles. Exeter was founded in 2006 by Ward Fitzgerald and Tim Weber, Exeter’s Chief Financial Officer. In June, 2015 Exeter sold a portfolio of industrial properties to Northstar Realty Finance Corporation for $317 million. For more information about Exeter please visit www.exeterpg.com.
About Henley Holding Company / ADIA
Henley Holding Company, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), is an investor in U.S. real estate assets.
ADIA is a public institution established by the Government of the Emirate of Abu Dhabi in 1976 as an independent investment institution. ADIA manages a global investment portfolio that is diversified across more than two dozen asset classes and sub categories. With a long tradition of prudent investing, ADIA’s decisions are based solely on its economic objectives of delivering sustained, long-term financial returns.
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investment managers with CA $112.0 billion of net assets under management as of March 31, 2015. Its team of approximately 600 professionals manages a diversified global portfolio, including public equities, private equity, bonds and other fixed‐Income securities, real estate, infrastructure, natural resources and private debt investments. PSP Investments is a Crown Corporation established to manage employer and employee net contributions since April 1, 2000, to the pension funds of the federal Public Service, the Canadian Forces and the Royal Canadian Mounted Police, and since March 1, 2007, the Reserve Force. PSP Investments’ head office is located in Ottawa, Ontario, and its principal place of business is in Montreìal, Queìbec. In November 2015, it opened its first foreign office in New York City, USA. For more information about PSP Investments, please visit www.investpsp.ca.
Great Ink Communications, Ltd.
Roxanne Donovan, 212-741-2977
Eric Waters, 212-741-2977
Photo courtesy of Shutterstock