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Axa expands logistics portfolio with €720m US purchase

AXA Investment Managers – Real Assets has paid $875 million (€720 million) for a logistics portfolio in the US. The portfolio has abiyt 743,000 sq m of space and comprises 27 assets in eight of the country’s key logistics markets.

The portfolio has been acquired through a share purchase of a REIT previously managed by private equity fir Cabot Properties. Cabot will retain a minority stake in the REIT and will remain as day-to-day manager of the portfolio.

The portfolio has assets in Chicago, Houston, Los Angeles, Central New Jersey, Dallas, South Florida, Southern New Jersey and Atlanta, markets which account for roughly 45% of the total logistics supply in the US. 

The portfolio is approximately 98% leased to 36 tenants, with an average unexpired lease term of approximately 4.8 years.

Axa IMRA said the assets are strategically positioned within major national and international transportation hubs that are mission critical for distribution operators and that, based on current market rents, the portfolio has reversionary rent potential.

The deal increases Axa IMRA’s world-wide logistics portfolio to about 41 million sq ft (3.8 million sq m) in 10 countries with a total value of $3.5 billion (€2.9 billion).

Axa IMRA head of North America Steve McCarthy said, “The demand for modern logistics space has proven robust against the backdrop of the global pandemic which has accelerated the adoption of existing technology-led trends including, most notably, the growth in e-commerce.”