KKR is selling warehouses to Oxford as part of a $ 2.2 billion real estate deal


    (Bloomberg) – Oxford Properties Group has agreed to buy a portfolio of industrial properties from KKR & Co. for approximately $ 2.2 billion as online shopping continues to drive investors towards warehouses.

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

    Warehouses were a hot corner of commercial property even before the pandemic, with investors betting on the surge in e-commerce and demand for fast shipping. Covid-19 has pushed consumers to shop even more online, leading to more investment in logistics real estate.

    “This transaction is an important next step for Oxford to build a large-scale industrial company in the US,” said Ankit Bhatt, Oxford’s Vice President of Investments, in the press release. “Expanding our US industrial business is one of Oxford’s strongest global investment strategies as we continue to build, buy and invest in the physical infrastructure that powers the digital economy.”

    The purchase by Oxford comes after a difficult year for Omers, in which the pension fund posted its worst annual loss since the global financial crisis in 2008.

    Omers attributed the 2.7% decline to his commitment to investing in the “old economy”, including retail real estate, and said his plan was to invest in what is known as the “new economy”.

    Although the half-year results released last week showed a turnaround with a gain of 8.8% across the portfolio, that was not enough to allay some members’ concerns about the fund’s long-term performance.

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