PGIM Real Estate has bought a 30-property US industrial portfolio for $700m, in a deal which reflects the manager鈥檚 continuous commitment to the sector.
The manager said its US core real estate strategy acquired the 5.4m sqft portfolio in partnership with Perlmutter Investment Company鈥檚 IAC Properties. PGIM Real Estate said the portfolio was acquired by recapitalising an interest in the existing joint venture structure.
The portfolio, located across Los Angeles, the Greater Chicago area, Seattle, Dallas-Fort Worth, and Louisville, Kentucky, is 97% leased.
Cathy Marcus, global COO and head of US equity for PGIM Real Estate, said: 鈥淔undamentals in each of the markets across this portfolio were exceptionally strong heading into 2020.
鈥淒espite the near-term impacts of COVID-19, we鈥檙e seeing continued growth in the US industrial sector and particularly in these high barrier-to-entry locations. We expect that this portfolio will outperform the national forecast over the long term.鈥�
Frank Garcia, MD and senior portfolio manager for PGIM Real Estate鈥檚 US core strategy, said: 鈥淲e were an early investor in the US industrial market and the COVID-19 crisis has accelerated many of the e-commerce-driven trends that were already in place and that initially made us bullish on the sector.
鈥淭hrough this acquisition and other large transactions this quarter, we鈥檝e been able to very efficiently deploy capital into the market and have strengthened our commitment to the sector as a result.鈥�
Last month, PGIM Real Estate invested $425m to buy an industrial portfolio on behalf of its US core real estate strategy.
The $182bn real estate manager owns more than 107m sqft of industrial space globally and more than 45m sqft in the US.
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