Xebec Announces $475 Million Commitment from BentallGreenOak to Form a New U.S.- Based Industrial Logistics Real Estate Partnership
Xebec, a Dallas-based fully integrated real estate development and investment management platform focused exclusively on the industrial and logistics real estate sector, announced today that BentallGreenOak (“BGO”), a global real estate investment management advisor, acting on behalf of its clients, has committed to invest $475 million of equity in Xebec-sponsored ventures. The strategic partnership includes an initial $170 million joint venture with Xebec Logistics Trust, LP (“XLT”) in a portfolio of stabilized core assets and an initial commitment of up to $305 million to Xebec’s future investment opportunities.
“We are thrilled to commence this strategic relationship with BentallGreenOak” said Randy Kendrick, Xebec’s co-founder and Chief Executive Officer. “Our new ventures with BGO provide Xebec with deep access to capital for both Xebec’s current core portfolio as well as future executions, which will accelerate Xebec’s investment strategy and we believe will create significant value. We look forward to the exciting growth opportunities ahead as Xebec, in partnership with BentallGreenOak, continues its trajectory to be a national leader in the investment in and management of industrial logistics real estate.”
Steve Reents, Managing Director, Investments for BentallGreenOak said “BGO’s focus on growing our strategic allocations in the U.S. industrial asset class is made stronger through partnerships like the one we’ve established with Xebec, a best-in-class investor in the logistics sector. Our partnership with Xebec has enabled BGO to gain additional scale with the recent acquisition of a majority interest in a modern, high quality, Class A portfolio with a concentration in Southern California’s in-fill industrial markets and opens the door to many more joint investment opportunities for the future.”
XLT is an open-end sector specific fund established by Xebec in 2017 with a focus of providing investors with attractive income and total returns by investing in high-quality industrial logistics assets located in key U.S. logistics markets. BentallGreenOak’s majority investment in the joint venture formed with XLT funded the acquisition in March, 2021 of five, fully-leased, new Class A industrial logistics assets totaling 1.6 million square feet and developed by Xebec. With the completion of BentallGreenOak’s investment and the acquisition of these new assets, and the contribution of XLT’s existing portfolio, the new joint venture is comprised of 13 industrial assets valued at approximately $560 million and totaling approximately 2.8 million square feet. The portfolio is 100% leased to high-quality tenants with over 80% of the portfolio’s value located in Southern California, the country’s leading industrial market.
In addition to the investments in the newly formed core joint venture with XLT, BentallGreenOak has committed over $300 million in equity to Xebec’s future industrial logistics investment pipeline. BGO’s equity commitment is a key component to Xebec’s strategy of continuing to grow its portfolio of Class A industrial logistics assets located in major U.S. gateway, intermodal and logistics markets.
“The impact of the COVID-19 pandemic on retail distribution has further catalyzed an already strong growth story for the industrial logistics real estate sector as eCommerce occupiers continue to expand their existing footprint. Xebec is focused on providing high-quality asset solutions to tenants with direct access to distribution channels and intermodal access to the global logistics supply chain,” added Kendrick.
JLL Capital Markets acted as exclusive equity placement agent and financial advisor and Latham & Watkins LLP served as legal counsel for Xebec.
Xebec is a privately held real estate investment platform that provides vertically integrated and full-service real estate acquisition, development, ownership, financing, leasing, property management and real estate investment management services. With over 30 years of industrial real estate development and investment operations, the company focuses on fulfillment, warehouse and distribution centers (bulk logistics), light industrial and infill/last-mile properties located primarily in U.S. coastal and inland logistics markets with major port and rail terminals and trucking intermodal infrastructures.
BentallGreenOak is a leading, global real estate investment management advisor and a globally-recognized provider of real estate services. BentallGreenOak serves the interests of more than 750 institutional clients with approximately $62 billion USD of assets under management (as of March 31, 2021) and expertise in the asset management of office, industrial, multi-residential, retail and hotel property across the globe. BentallGreenOak has offices in 24 cities across twelve countries with deep, local knowledge, experience, and extensive networks in the regions where BentallGreenOak invests in and manages real estate assets on behalf of clients in primary, secondary and co-investment markets. BentallGreenOak is a part of SLC Management, which is the alternatives asset management business of Sun Life.
The assets under management shown above include real estate equity and mortgage investments managed by the BentallGreenOak group of companies and their affiliates.
For more information, please visit www.bentallgreenoak.com