Deals

Ivanhoé to buy TPG’s US industrial platform for $1bn

The deal would mark the US sector debut for the Canadian investor and an exit for the Fort Worth, Texas-based firm just three years after launching the business.

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Ivanhoé Cambridge is expected to make its US industrial real estate debut with the forthcoming purchase of private equity firm TPG’s industrial platform, PERE has learned.

The Canadian investor is nearing a deal to buy Evergreen Industrial Properties for about $1 billion and expects to finalize the purchase this summer, sources with knowledge of the transaction told PERE.

Ivanhoe and TPG declined to comment.

Fort Worth, Texas-based TPG started marketing Evergreen last summer, PERE previously reported. The firm created the platform in May 2014, seeding it with a 7.5 million square foot portfolio purchased from San Francisco-based Prologis for $375 million. It was unclear how much capital TPG has invested in Evergreen since the purchase of the Prologis portfolio. The acquisition was the first investment from TPG Real Estate Partners II, a $2.1 billion value-added fund that closed in October 2015. TPG launched TREP II, its first commingled real estate fund, in early 2014 with a $2 billion target.

Now, Evergreen’s business totals over 16 million square feet with about 150 assets across the US, according to the firm’s website.

TPG and Ivanhoé, the real estate arm of pension system Caisse de Depot et Placement du Quebec, have previously invested together in industrial real estate. In November, the firms sold Point Park Properties to GIC Private, the Singaporean sovereign wealth fund, in a deal valuing the logistics platform at €2.4 billion – Europe’s largest property transaction of 2016, PERE reported at the time. The partners acquired the company in 2013.

In Asia, Ivanhoé teamed up with Australian advisory firm Macquarie Capital to jointly acquire the Sydney-headquartered logistics property company LOGOS in March 2016, PERE previously reported. Since that time, LOGOS has expanded into Indonesia and Singapore.

Ivanhoé managed about C$56 billion ($42 billion; €39.8 billion) in real estate as of December 31. TPG has about $70 billion in assets under management across its platforms, according to its website.