Guggenheim commits $600M to new e-commerce venture with ElmTree

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Guggenheim Investments has committed $600 million to a new
fund with private equity partner ElmTree Funds focused on investing in
industrial e-commerce assets throughout the United States.

As part of the transaction, ElmTree, which specializes in
acquiring build-to-suit properties net leased to investment grade tenants, will
invest in industrial real estate assets tied to the e-commerce, last-mile, and
logistics sectors.

These assets are in high demand as more corporations aim to
efficiently build out supply chains to incorporate faster delivery times as a
result of consumer demand.

“We are thrilled to match our expertise in the
industrial real estate sector with a quality investment partner like
Guggenheim,” said James Koman, CEO and Founder of ElmTree. “This
strategic partnership provides fresh capital to continue investing in mission
critical assets that are in high demand across the country, while generating
steady, long-term cash flow.”

Jennifer Marler, Senior Managing Director and Head of Real
Estate at Guggenheim Investments added, “Guggenheim Investments is pleased
to partner with ElmTree on another transaction that benefits our clients and
the stakeholders of the real estate projects. In these challenging times, we
will continue to create innovative opportunities like this to drive value for
our clients.”

The COVID-19 pandemic has accelerated both the growth and
adoption rates of e-commerce in the US. With sales expected to hit $1.25
trillion by 2025, JLL predicts demand for warehouse and distribution space to
reach over one billion square feet by then.

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