Denver-based DCT Industrial Trust is working with JP Morgan Asset Management on a new joint venture to invest in logistics properties in the US.
DCT Industrial, a REIT listed on the New York Stock Exchange, plans to contribute approximately $140 million (€102 million) worth of seed properties to the venture by the end of the third quarter, the firm said in a statement. It has already contributed $68 million in assets to the partnership, made up of a 1.5-million-square-foot portfolio of industrial space in Chicago, Cincinnati and Dallas.
The firms plan to grow the joint venture with the acquisition of additional space throughout the US. DCT will have a 20 percent stake in the joint venture.
In a statement, Jim Cochran, president and chief investment officer at DCT, said that the venture is the REIT’s third capital relationship and its fourth joint venture.
“Our institutional capital management platform helps fuel growth by providing a means to recycle capital, while simultaneously supplying a recurring fee stream for services provided,” he said of the strategy.
DCT also has a joint venture with Kuwait-based Boubyan Bank. Announced in 2006, the REIT holds 20 percent of the venture and contributed 6 buildings to the partnership, valued at $123 million. DCT now has $545 million in assets under management, with properties in both the US and Mexico.