$800 million seed investment secured to expand an industrial park portfolio
Arden Group, a real estate investment and management firm, had its eyes set on expanding their portfolio into new markets. With 30 industrial parks across the US they were already in a strong position
Value
$800 million
Spotlight
Capital Markets & Securities
Location
US
How to manage and expand a complex portfolio across the US?
Managing large assets across vast distances within a niche asset class takes time and specialist real estate operations expertise. How would Arden Group find a partner who could support with the existing portfolio whole financing its expansion? They needed a singular global advisor with expertise in debt financing and capital markets to to structure a solution that would help them grow while navigating volatility and mitigating risks.
Working hand-in-hand, JLL’s Securities and Capital Markets teams delivered Arden Group's objectives through combined expertise in debt financing, capital markets, and investment advisory. In lock step, valuations experts were able to establish a fair price for the portfolio while the securities team recommended forming a joint venture with acquisition financing to facilitate the deal. JLL Capital Markets supported Arden Group throughout each step of the transaction providing comprehensive investment advisory.
Positioning a market leading industrial asset
JLL’s global-to-local researchers used sector and location-specific knowledge to position Arden Group’s portfolio as a best-in-class, multi-tenant industrial investment opportunity. By educating potential investors about the benefits of this niche asset class and accessing JLL’s network of leading global investors, the asset reached over 100 potential partners and generated multiple bids and rounds of negotiation.
Delivering financial flexibility
JLL advised and oversaw the creation of the Arden Logistics Park joint venture, which was established between Arden Group and Arcapita Group, a Bahrain-based global asset manager. The deal was seeded with an $800 million portfolio of multi-tenant warehousing and Arcapita acquired a 49% interest with further plans to grow the gross asset value to $2 billion via securing substantial financing and structuring a high-yielding, long-term partnership has accelerated Arden Group’s growth plans. Part of this plan includes a potential IPO. This was possible by annulling existing debt to increase the group’s financial flexibility and generate higher returns.
Arden Group successfully expanded its industrial park portfolio, not only securing the necessary financing, but also establishing a strategic partnership with Arcapita Group that will bring future expansion opportunities.
