Indianapolis
New Joint Venture Between Duke Realty and CBRE Global Investors Closes on First Tranche of Three Assets Totaling 1.3 Million Square Feet
28 Jul 2021
Senior Director, Corporate Communications
Pam Barnett
Senior Director, Corporate Communications
Duke Realty Corporation (NYSE: DRE, or “Duke Realty”), the largest domestic-only logistics REIT, and CBRE Global Investors, a leading global real assets investment management firm, today announced the formation of a joint venture (the “Venture”). The Venture will be 80% owned by a fund sponsored by CBRE Global Investors and 20% by Duke Realty. The Venture plans to place secured debt financing on the assets in an amount approximating 50 to 60 percent loan-to-value.
Overall Duke Realty plans to contribute seven (7) facilities totaling 4.8 million square feet and two trailer storage lots totaling 25 acres to the Venture that will close in three tranches. As part of the formation, today the partners closed on the first tranche of two (2) facilities totaling 1.3 million square feet and one (1) trailer lot totaling 17.2 acres, at an agreed upon value of $157 million. These assets are located in Atlanta and Chicago. The second tranche consists of two (2) facilities and one (1) trailer lot in Baltimore and is expected to close later in the third quarter. The third tranche consists of three (3) facilities located in Pennsylvania, Seattle and South Florida, which are expected to close in early 2022.
“As we’ve alluded to on our last few earnings calls, we’ve intended to monetize a portion of assets leased to one of our largest customers to manage portfolio risk. With today’s transaction, we are pleased to partner with a high quality investment management firm like CBRE Global Investors, an entity we have had several successful transactions with in the past,” said Jim Connor, Duke Realty’s Chairman and CEO.
Gary Jaye, CBRE Global Investors’ Head of Americas Logistics Operator Division, also commented, “We have deep knowledge and scale in the logistics sector and believe it will continue to create vast future opportunities. We believe this investment with a best-in-class partner like Duke Realty supports our strategic ambitions for overweighting the sector to deliver real assets solutions that capitalize on market opportunities to drive outperformance.”
About CBRE Global Investors
CBRE Global Investors is a global real assets investment management firm with $129.1 billion in assets under management* as of June 30, 2021. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE). It harnesses the research, investment sourcing and other resources of the world’s largest commercial real estate services and investment firm (based on 2020 revenue) for the benefit of its investors. CBRE Group, Inc. has more than 100,000 employees serving clients in more than 100 countries. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers.
Overall Duke Realty plans to contribute seven (7) facilities totaling 4.8 million square feet and two trailer storage lots totaling 25 acres to the Venture that will close in three tranches. As part of the formation, today the partners closed on the first tranche of two (2) facilities totaling 1.3 million square feet and one (1) trailer lot totaling 17.2 acres, at an agreed upon value of $157 million. These assets are located in Atlanta and Chicago. The second tranche consists of two (2) facilities and one (1) trailer lot in Baltimore and is expected to close later in the third quarter. The third tranche consists of three (3) facilities located in Pennsylvania, Seattle and South Florida, which are expected to close in early 2022.
“As we’ve alluded to on our last few earnings calls, we’ve intended to monetize a portion of assets leased to one of our largest customers to manage portfolio risk. With today’s transaction, we are pleased to partner with a high quality investment management firm like CBRE Global Investors, an entity we have had several successful transactions with in the past,” said Jim Connor, Duke Realty’s Chairman and CEO.
Gary Jaye, CBRE Global Investors’ Head of Americas Logistics Operator Division, also commented, “We have deep knowledge and scale in the logistics sector and believe it will continue to create vast future opportunities. We believe this investment with a best-in-class partner like Duke Realty supports our strategic ambitions for overweighting the sector to deliver real assets solutions that capitalize on market opportunities to drive outperformance.”
About CBRE Global Investors
CBRE Global Investors is a global real assets investment management firm with $129.1 billion in assets under management* as of June 30, 2021. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE). It harnesses the research, investment sourcing and other resources of the world’s largest commercial real estate services and investment firm (based on 2020 revenue) for the benefit of its investors. CBRE Group, Inc. has more than 100,000 employees serving clients in more than 100 countries. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers.