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Oxford lands $1.4B CMBS financing for $2.2B KKR industrial portfolio purchase

Canadian-based company buying 15M sq ft across 149 properties

Oxford lands $1.4B CMBS financing for $2.2B KKR industrial portfolio purchase
Oxford Properties president Michael Turner, San Diego, Orlando and Dallas Skylines (Oxford Properties, iStock)

Oxford Properties Group has lightened its load on a massive industrial portfolio purchase, securing $1.43 billion in commercial mortgage-backed securities financing.

The loan is designated for the Canadian-based company’s $2.2 billion purchase of an industrial portfolio from KKR. It comes in the form of a five-year floating-rate loan that is being securitized in a single-asset, single-borrower transaction. Morgan Stanley, Goldman Sachs, Citigroup and Deutsche Bank are providing the debt, according to the Commercial Observer.

Oxford last month continued its push into the U.S. industrial market by agreeing to buy a 14.5-million-square-foot industrial portfolio from KKR. The portfolio includes 149 buildings, many of which are located near population centers that can be used by e-commerce retailers as warehouses and distribution points, a booming property type.

A majority of the portfolio’s properties are also located in Sunbelt states, where the population is surging. Locations for the portfolio include California’s Inland Empire, San Diego, Dallas, Tampa and Orlando.

It took KKR three years and 50 transactions to build the portfolio. The company won’t be hurting for more industrial properties, as it will still own more than 20 million square feet of them after the deal.

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Oxford is in the midst of a four-year plan to capitalize on investment opportunities in the United States. It has already invested in regional distribution centers and cold-storage facilities across the nation; in 2020, the company invested in Lineage Logistics, a cold-storage logistics provider.

The company previously acquired IDI Logistics in 2019 for $3.5 billion, partnering with Ivanhoe Cambridge on the deal. This portfolio buy is its first foray into “infill” locations in the country.

Additionally, the company is no stranger to industrial real estate properties across the globe. Oxford has purchased buildings throughout Canada in the past decade, as well as in Asia and Europe.

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[CO] — Holden Walter-Warner

Tags
Commercial Real EstateIndustrial Real EstateKKR