Ivanhoé Cambridge has just finalized its purchase of Evergreen Industrial Properties, a U. S.-based company specializing in light industrial spaces, from TPG Real Estate.
Ivanhoé Cambridge bought Evergreen Industrial Properties from TPG Real Estate. (CNW Group/Ivanhoé Cambridge)
A source familiar with the deal told the Globe and Mail that the price was around $1 billion US.
Evergreen owns and manages over 150 properties, totaling about 16 million square feet spread across 18 key markets.
The company is active not just in fast-growing cities like Seattle, Denver, and Charlotte but also holds a strong position in major distribution hubs such as Atlanta, Chicago, and Dallas.
Provides key locations close to customers
Their facilities offer convenient infill sites for distribution centers, e-commerce companies, and light manufacturing clients.
“We are very enthusiastic about this acquisition. We started looking at companies in the industrial real estate sector over two years ago with the intention of making a strategic investment in this asset class,” Arthur Lloyd, president of Office North America at Ivanhoé Cambridge said Friday morning in a statement.
“Industrial real estate offers an attractive current return and good diversification for our office portfolio in terms of underlying economic drivers.
“We continue to look for opportunities as we plan to grow our industrial business in the years to come.”
Evergreen targets smaller infill assets under 250,000 square feet designed for “last-mile” delivery users located near growing metro areas. TPG Real Estate launched Evergreen back in 2014 by acquiring a portfolio of 7.5 million square feet to start it off.
The company then expanded through 11 additional purchases, adding another 127 properties across those focused markets.
“In creating Evergreen, we saw an opportunity to build a platform that was positioned to benefit from a dynamic sector shift to last-mile and infill locations by light industrial and e-commerce users,” said Avi Banyasz, partner and co-head of TPG Real Estate.
A bit about Ivanhoé and TPG
Ivanhoé Cambridge is a major player globally in real estate. It began operations in Quebec back in 1953. Through various subsidiaries and partnerships they own interests in nearly 800 buildings including residential units, offices, retail spots, plus logistics properties. Their total assets are valued around $56 billion Canadian dollars.
This firm operates as part of Caisse de dépôt et placement du Québec – one of Canada’s top institutional money managers.
The other side here is TPG Real Estate which serves as the property arm of TPG – an international private investment group managing over $73 billion worldwide with offices spanning sixteen cities globally.
Their real estate branch includes both equity investing via TPG Real Estate Partners plus debt-related activities through TPG Real Estate Finance Trust. Altogether these platforms handle more than $5 billion worth of assets combined.
