CBRE GIP-backed fund acquires first portfolio – exclusive

Realterm, a global real estate operator, bought more than 120 properties through its open-end airport logistics vehicle which was backed by a $490 million investment from CBRE Global Investment Partners, sources told PERE.

CBRE Global Investment Partners (GIP) invested $490 million with Realterm, a global real estate operator, in a new airport industrial portfolio that closed this week, sources told PERE.

Clients advised by CBRE GIP invested $490 million in Realterm Airport Logistics Properties, a $600 million open-end, commingled vehicle that is managed by Realterm’s subsidiary, Aeroterm. This is CBRE GIP’s first investment with Realterm.

Using capital from the vehicle, Realterm has assembled a 15 million square foot air cargo logistics portfolio for about $900 million. Realterm is seeking to double the size of its portfolio over the next several years, sources told PERE. The current portfolio comprises over 120 properties across 30 gateway and key secondary airports across North America.

These air cargo facilities function as high flow-through logistics properties moving cargo from planes to trucks, with a back door opening onto a runway and a front door opening onto a highway. Realterm also has an air cargo asset in Copenhagen. Through its airport vehicle, the firm plans to primarily invest in gateway markets, for example airports that receive international cargo, such as O’Hare, Miami and New York’s John F. Kennedy airport.

“On-airport industrial property is an attractive market segment that offers strong fundamentals because these properties are critical to the global air cargo supply chain and have significant barriers to entry,” said Jeremy Plummer, CBRE GIP’s chief executive officer, in a statement.

Realterm, founded in 1991, manages about $2.2 billion in assets, including $1.3 billion in commingled equity through three vehicles. The multi-strategy private equity firm was a joint venture operator before it transitioned to a private equity manager, raising its first fund, focused on Indian industrial investing, in 2009.