New York-based real estate investment manager Clarion Partners has acquired a 2.8 million square-foot industrial portfolio from recently restructured San Francisco-based global industrial real estate developer Prologis for $118 million.
According to announcements from both firms, the portfolio consists of 13 properties which are located in nine markets including Atlanta, Cincinnati, Columbus, Dallas, Indianapolis, San Antonio, Phoenix, Salt Lake City and Tracy, California. The properties, according to Clarion, are on average 90 percent leased.
“These are highly functional, Class A assets, located in key logistics markets and population centres across the US,” said Dayton Conklin, senior vice president at Clarion Partners in a statement. Clarion said it acquired these properties because “industrial space continues to be absorbed by the market, with the potential for warehouse demand to accelerate later in the year”.
Prologis Private Capital chief executive officer Guy Jaquier said in a statement that the disposition of this portfolio was part of the firm's “continuing programme to enhance investor returns” in its private capital funds. “We are selectively selling properties where we have maximized value or where they no longer fit our strategic goals and objectives,” he added.
The sale of this portfolio follows Prologis’ merger with AMB Property earlier this summer. The merger followed a particularly tumultuous past few years for Prologis, which was forced into a huge restructuring and market retrenchment after the company took on too much debt in order to expand into new markets in the years before the start of the global financial crisis.