BentallGreenOak continues expanding its U.S. logistics holdings by committing $475 million of equity in an industrial and logistics real estate partnership with Xebec, a privately held Dallas-based real estate development and investment management platform.
Acting on behalf of its clients, the global real estate investment management advisor invested an initial $170 million, in a joint venture with Xebec Logistics Trust LP, in a portfolio of stabilized core assets. BentallGreenOak also committed up to $305 million to fund future Xebec investment opportunities.
Randy Kendrick, Xebec’s co-founder & CEO, said in a prepared statement the partnership will provide Xebec with deep access to capital for its current core portfolio and future transactions in major U.S. gateway, intermodal and logistics markets.
XLT is an open-end sector specific fund established by Xebec in 2017, with a focus on providing investors with attractive income and total returns by investing in high-quality industrial logistics assets located in key U.S. logistics markets. Founded more than 30 years ago, Xebec has acquired and developed, redeveloped or repositioned industrial and logistics projects totaling more than 9 million square feet, including about 15 million square feet currently in development.
JLL Capital Markets acted as exclusive equity placement agent and financial advisor for the deal with BentallGreenOak. Latham & Watkins LLP served as legal counsel for Xebec.
First JV transaction
BentallGreenOak’s majority investment in the joint venture funded the acquisition of five fully leased assets totaling 1.6 million square feet that were developed by Xebec. The modern, Class A portfolio has a concentration of assets in Southern California’s in-fill industrial markets. With the completion of BentallGreenOak’s investment and the acquisition of the new assets, the joint venture comprises 13 industrial assets valued at approximately $560 million and totaling about 2.8 million square feet. The portfolio is 100 percent leased to high-quality tenants, with more than 80 percent of the portfolio’s value in Southern California.
Steve Reents, managing director, investments, for BentallGreenOak, said in prepared remarks the firm is growing its strategic allocations in the U.S. industrial market through partnerships like the one with Xebec. He said the partnership enabled BentallGreenOak to gain additional scale with the purchase of the majority interest in the Southern California portfolio.
In April, BentallGreenOak partnered with Ti Cold Development to provide capital to fund Ti Cold’s growing cold storage portfolio in the U.S. and Canada. The partnership’s first two projects, totaling 571,390 square feet, are currently under construction in Phoenix and Reno, Nev., and are expected to be completed in 2022.
Earlier this year, BentalGreenOak acquired a 90,000-square-foot Brooklyn, N.Y., industrial property leased to Amazon from a joint venture between Harbor Group International and Turnbridge Equities. Also in February, the company agreed to purchase Metropolitan Real Estate Equity LLC, a multi-manager real estate private equity investment platform with more than $2.4 billion in assets, from The Carlyle Group.