Exeter Property closes on $3B sale

Exeter Property Group has closed on a $3.15 billion transaction in which it sold a 58-million-square-foot portfolio of industrial properties in 25 markets throughout the United States.

The Plymouth Meeting, Pa., company sold the portfolio, which consists of 209 properties, to a joint venture of Henley Holding Co., a subsidiary of the Abu Dhabi Investment Authority, and the Public Sector Pension Investment Board, which is one of the largest Canadian pension investment managers.

Exeter invested in the joint venture and will also continue to manage the purchased properties. Most of the properties are in Dallas, Chicago, Columbus, Ohio, Memphis, Tenn., and Atlanta.

The portfolio was marketed by Eastdil Secured and CBRE Inc.

“We are very pleased to have concluded the sale of this exceptional portfolio of industrial properties on behalf of our investors. ADIA and PSP Investments are two of the most highly-regarded international real estate investors, and we are thrilled to work with our new partners in the continued successful management of these properties as well as in other opportunities in the United States and abroad," said Ward Fitzgerald, CEO of Exeter, in a statement.

The deal ranks among the largest industrial transactions done this year and is one of the biggest involving a Philadelphia area real estate firm. Among the other mega industrial portfolios that have sold involved Blackstone Group completing an $8 billion sale, Prologis in a $5.9 billion acquisition and Industrial Income Trust selling its properties for 4.5 billion. Earlier this year, Exeter also sold a portfolio of industrial properties to Northstar Realty Finance Corp. for $317 million.

Fitzgerald, who spent 14 years at Liberty Property Trust (NYSE: LPT), and Tim Weber, who was a partner at Terramics Property Co., formed Exeter in 2006 to leverage a fund into acquiring industrial, big-box warehouse, manufacturing and flex space throughout the country.

Exeter Property Group was represented by Fried, Frank, Harris, Shriver & Jacobson and Silverang, Donohoe, Rosenzweig & Haltzman. ADIA was represented by Kirkland & Ellis, and PSP Investments was represented by Davies Ward Phillips & Vineberg and Torys.

Source: Philadelphia Business Journal