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Invesco Real Estate, an arm of global investment manager Invesco Ltd., has acquired a minority stake in Faropoint, an investor that specializes in industrial assets, especially small-bay warehouses in the U.S.
The size of the investment wasn't specified, and both parties declined to comment to Bisnow Wednesday morning on the matter.
Since 2018, Faropoint has acquired more than 400 warehouses totaling 20M SF of last-mile facilities. In October, the company acquired two industrial parks in the North Bergen County, New Jersey, submarket for a combined $144.5M.
“As a part of our broader strategic initiative to vertically integrate operating platforms across our highest conviction sectors, we believe this investment into Faropoint will allow us to capitalize on secular tailwinds affecting this compelling sub-sector,” Invesco Real Estate Head of North America Bert Crouch said in a statement.
For its part, Faropoint is anticipating turbulent times ahead for industrial real estate.
“There’s a trillion dollars of loan maturities coming in the next two, three years,” former Faropoint Senior Vice President Willie Ross said during a Bisnow event in Atlanta in May. Ross left Faropoint in August.
“A lot of that stems from all the variable-rate financing that the industrial developers did in 2021. The reality of that is that there’s not a true takeout for a lot of those loan maturities and there’s not true rescue capital. There will be some distress.”
As of the end of the third quarter, Invesco had just less than $1.5T in assets under management, down 3.3% from the previous quarter. Invesco Real Estate had $91.1B in real estate assets under management as of Q3.
CORRECTION, NOV. 29, 4:04 P.M. ET: This story has been updated to reflect the fact that Willie Ross no longer works at Faropoint.
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