TPG’s TPG AG U.S. Real Estate platform has acquired a 53-building industrial portfolio for $628 million in a transaction sourced and led by Redfearn Capital.
The portfolio comprises approximately 5.4 million square feet of distribution, logistics and manufacturing facilities across Florida, Georgia, Illinois, Minnesota, North Carolina, Oregon and Tennessee. Approximately 75 percent of the assets are concentrated in the Southeast, with properties located in major industrial markets such as Atlanta; Charlotte, N.C.; Lakeland and Tampa, Fla.; and Raleigh, N.C. The portfolio is currently 87 percent occupied and benefits from a broad tenant base.
TPG AG acquired the portfolio alongside operating partners Redfearn, Atlanta Property Group and Matterhorn Venture Partners, building on TPG AG’s existing partnership with each firm. The firms will jointly manage the Portfolio with each operating partner contributing deep local expertise in its respective market: Redfearn in Tampa, Lakeland and Memphis, Tenn.; Atlanta Property Group in Atlanta, Raleigh/Durham and Charlotte; and Matterhorn Venture Partners in Chicago.
“This acquisition represents another significant milestone in our investment strategy and reinforces our conviction in the long-term fundamentals of the U.S. shallow bay industrial sector,” said Chris Oka, managing director, TPG AG. “We are pleased to continue our long-standing partnerships with operating partners Redfearn, Atlanta Property Group and Matterhorn Venture Partners to acquire and operate a portfolio of high-quality assets with strong occupancy, diversified tenancy and compelling opportunities to create value through active asset management. We look forward to supporting the portfolio’s continued growth.”
The portfolio consists primarily of shallow-bay industrial assets in markets defined by high barriers to entry. TPG AG plans to create value through active asset management, including targeted capital investment to address deferred maintenance and improve tenant retention.
Eastdil Secured advised on the debt financing for the transaction. Greenberg Traurig represented the TPG-led consortium as its legal adviser.
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