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Stockbridge and South Korean firm strike $2B warehouse deal

Uptick in online shopping drives demand for industrial space

Stockbridge managing director Terry Fancher (Photos via Stockbridge)
Stockbridge managing director Terry Fancher (Photos via Stockbridge)

Shopping online more than usual? Real estate investors are taking notice.

With a surge in e-commerce creating more demand for distribution space, Stockbridge Capital Group and the National Pension Service of Korea have acquired a portfolio of 23 facilities in a deal valued at $2 billion, the largest of its kind since the pandemic hit. The transaction was first reported by the Wall Street Journal.

The seller is Hillwood, a real estate development and investment firm founded by Ross Perot, Jr.

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It is one of several major industrial deals of late, as investors look to capitalize on the growing sector. It was reported this week that New York investment firm KKR is close to finalizing a warehouse deal valued at more than $800 million.

The portfolio acquired by Stockbridge and its partner spans 14.3 million square foot with facilities in Atlanta, Boston, Chicago and other areas.

“We see this acquisition as an exceptional way of tapping into the rapid acceleration of ecommerce growth — one of the most impactful investment themes post-Covid, and likely of the decade to come,” said Terry Fancher, Stockbridge’s executive managing director.

The transaction marks an expansion of Stockbridge’s already growing logistics footprint. Last August, the firm acquired an 6.4 million-square-foot portfolio, followed by an 8.7 million-square-foot portfolio in November.

[WSJ] — Sylvia Varnham O’Regan

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Foreign InvestmentIndustrial Real EstateInvestment Sales