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In Hot Industrial Market, Industrial Property Trust Might Fetch $3.5B

Black Creek Group is considering a sale of its Industrial Property Trust, which might trade for as much as $3.5B in a market in which industrial real estate is in high demand.


Among possible suitors for IPT, which holds 240 properties totaling about 37.6M SF, are real estate private equity firms, and sovereign wealth and pension funds, Bloomberg reports, citing an anonymous source. 

The properties include bulk warehouse space, as well as last-mile logistics facilities — a particularly hot subsector — and are about 96% leased overall.

Over the last five years, Black Creek has developed about 10.5M SF of industrial properties and has 11M SF under development.

The company's expansion is in prime industrial markets, such as Northern California. Black Creek Group recently developed eight industrial projects totaling 3M SF in that part of the state, doubling its footprint in the region.

Last fall, J.P. Morgan Asset Management agreed to invest $400M in equity in various industrial real estate projects undertaken by Denver-based Black Creek.

Black Creek explored a sale of the nontraded Industrial Property Trust last year, but ultimately decided not to proceed, reportedly because (in part) the playing field was crowded with other sizable industrial portfolio trades at the time.