Oxford Properties buys $2B U.S. industrial portfolio from KKR

Deal includes 15M sq ft across 149 buildings, mostly warehouse facilities in Sunbelt states

National /
Aug.August 17, 2021 10:30 AM
Oxford Properties Group President Michael Turner and KKR Co-Ceo Henry Kravis (Oxford, Getty)

Oxford Properties Group President Michael Turner and KKR Co-Ceo Henry Kravis (Oxford, Getty)

Oxford Properties Group is eyeing action in the red hot industrial space as part of its continued push into the U.S. market.

The Canadian-based, multinational real estate investment firm has agreed to buy a 14.5-million-square-foot portfolio of industrial properties from KKR for $2.2 billion, according to the Wall Street Journal.

Many of the 149 buildings in the deal are located near population centers, properties typically used by online retailers as warehouses and distribution points ahead of delivery to customers. Interest in those properties has increased during the pandemic as more Americans shop online.

Most of the properties are also in Sunbelt states experiencing population growth. KKR spent three years and 50 transactions building the portfolio, the Journal reported, adding that the firm will still own about 20 million square feet of industrial real estate after the deal.

Last year, KKR made at least one major industrial transaction, acquiring 9.7 million square feet of space in seven markets for approximately $835 million. It’s not clear if any of the properties from that acquisition are included in the Oxford deal.

Oxford has been looking at investment opportunities in the United States over a four-year plan. The company has already invested in regional distribution centers and cold-storage facilities across the country, according to the Journal, but this is its first venture into “infill” locations in the U.S.

Oxford is no stranger to industrial property, purchasing buildings in Canada over the past decade, as well as Asia and Europe.

[WSJ] — Holden Walter-Warner





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