PGIM funds $332M loan as AXA grows US industrial footprint

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PGIM Real Estate has provided a $332 million senior loan
facility to a partnership between clients of AXA Investment Managers – Real
Assets and Cabot Properties for the acquisition of 18 industrial properties
located throughout the U.S. acquired as part of a 27-asset industrial portfolio
acquisition. 

In a significant step in its strategy to grow a U.S. wide
logistics platform, AXA acquired the 7,984,000 s/f portfolio for $875 million.

The portfolio has been acquired through a share purchase of
a REIT previously managed by Cabot Properties, an international private equity
real estate investment firm. Cabot will retain a minority stake in the REIT and
will remain as day-to-day manager of the portfolio.

The portfolio comprises 27 high-quality modern assets spread
across eight of the key logistics markets in the U.S. including Chicago,
Houston, Los Angeles, Central New Jersey, Dallas, South Florida, Southern New
Jersey and Atlanta. Together these local markets account for 45 percent of the
total logistics supply in the U.S. 

All the assets are positioned within major national and
international transportation hubs that are mission critical for distribution
operators. The portfolio is approximately 98 percent leased to 36 tenants, with
an average unexpired lease term of approximately 4.8 years.

This transaction expands AXA IM – Real Assets’ global
logistics portfolio to 41 million square feet in 10 countries with a total
value of $3.5 billion.

Brett Ulrich, executive director at PGIM Real Estate, co-originated
the loan with Christy Lockridge, executive director.

Lockridge commented, “This transaction presented us with an
attractive opportunity to lend on a stable recession-resilient portfolio with
best-in-class sponsorship. Its diversification across markets and industrial
property subtypes will cushion it against near-term impacts on the market
stemming from COVID-19.”

Tenants include e-commerce and logistics firms, as well as
companies in industries such as food distribution, food production, and
manufacturing.

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