Ivanhoé Cambridge announced today that it has completed the acquisition of Evergreen Industrial Properties (“Evergreen” or the “company”) from TPG Real Estate. Financial terms of the transaction were not disclosed.
Evergreen is a U.S. light industrial real estate specialist that owns and operates a portfolio of more than 150 properties, comprising approximately 16 million ft2 (1,486,000 m2) across 18 major markets. In addition to high-growth markets such as Seattle, Denver, and Charlotte, the company has a significant presence in major distribution markets, including Atlanta, Chicago, and Dallas. Evergreen’s facilities offer strategic infill locations to distribution, e-commerce, and light manufacturing customers with a focus on “last mile” distribution.
“We are very enthusiastic about this acquisition. We started looking at companies in the industrial real estate sector over two years ago with the intention of making a strategic investment in this asset class,” declared Arthur Lloyd, President, Office North America, at Ivanhoé Cambridge. “Industrial real estate offers an attractive current return and good diversification for our office portfolio in terms of underlying economic drivers. We believe we have found the right fit with Evergreen. We continue to look for opportunities as we plan to grow our industrial business in the years to come”
Evergreen focuses on infill, multi-tenant assets of less than 250,000 ft2 (23 225 m2) in locations that are well-positioned to serve the needs of last-mile users in growing metropolitan centers. By leveraging local relationships and market expertise, Evergreen has successfully established a track record of acquiring assets through both single-property and portfolio transactions.
TPG Real Estate created Evergreen in 2014, seeding the platform with a 7.5 million square foot (697,000 m2) portfolio acquisition. Through 11 distinct acquisitions, Evergreen then acquired an additional 127 properties in 18 targeted markets.
“In creating Evergreen, we saw an opportunity to build a platform that was positioned to benefit from a dynamic sector shift to “last mile” and infill locations by light industrial and e-commerce users,” said Avi Banyasz, Partner and Co-Head of TPG Real Estate. “Working with the Evergreen team, we have developed a solid operating platform that has continued to drive performance and growth. We have enjoyed partnering with the company over the past few years and believe it is well-positioned to continue to grow under Ivanhoé Cambridge’s ownership.”
This transaction reflects TPG Real Estate’s theme-driven approach to investing, building, and scaling differentiated real estate platforms.