Saturday, September 25

Oxford Properties buys KKR warehouses in $2.2-billion deal

Acquiring 149 distribution properties in 12 US markets

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Oxford Properties Group agreed to buy a portfolio of industrial properties from KKR & Co. for about US$2.2 billion as online shopping continues to drive investors toward warehouses.

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Oxford, the real estate arm of the Ontario Municipal Employees Retirement System, is acquiring 149 distribution properties in 12 US markets, including Dallas, Phoenix, Chicago and Tampa, according to a statement Tuesday.

Warehouses were a hot corner of commercial real estate even before the pandemic, with investors betting on the rise of e-commerce and demand for quick shipping. COVID-19 pushed consumers to shop online even more, fuelling more investment in logistics properties.

“This transaction is an important next step for Oxford to build a large scale industrial business in the US,” Ankit Bhatt, Oxford’s vice president of investments, said in the release. “Growing our US industrial business is one of Oxford’s highest conviction global investment strategies as we continue to build, buy and invest in the physical infrastructure that serves the digital economy.”