LPC Logistics Venture 2 LP (“Venture II”), the 2nd expand-to-core fund established by Logistics Property Company, LLC (“LPC”), has successfully concluded with total capital pledges of 1.2 billion USD from a number of worldwide major stakeholders and co-investment by LPC itself.
There is still considerable cash to spend on fresh construction ventures that provide return to shareholders; 35 percent of the firm has already been invested in Georgia, Illinois, Texas, Colorado, the Inland Empire, Pennsylvania, Arizona, and Southern New Jersey.
The investments
In August this year (“Venture I”), LPC and its worldwide corporate partners raised $1 billion in capital pledges to fund their first ever “develop-to-core” endeavor. As of this writing, LPC has committed all of the equity from Venture I to projects totaling over 20 million sq ft in the U. S.
Venture II’s successful capital round “speaks to the opportunistic industrial real estate market and the solid develop-to-core strategy affording investors the chance to buy Class A industrial buildings in tier one locations at an attractive basis,” as stated by LPC CEO Jim Martell.
Previous experience in Venture 1
LPC is grateful to the shareholders in Venture 1 who have also dedicated themselves to Venture II, and it is pleased to welcome a few new big organizations as partners in this new endeavor. The strategy for Venture II is to acquire prime real estate in strong U.S. markets, construct Class A production houses to current standards, including key ESG factors the investments, and hold for long-term portfolio growth.
Projects in Venture 2
Five additional projects for Venture II, totalling 2.3 million square feet, will begin construction in 2022, as stated by LPC. Illinois addresses that include both 4275 Ferry Road and Diehl Road.
The Palm Gateway Logistics Complex in Mesa, Arizona, will have 4 structures with a combined area of 613,000 sq ft, and is one of the Venture 2 developments set to begin construction by the conclusion of the calendar year 2022.
The site for a proposed 341,000 sq ft storage building in San Bernardino, California, was also purchased and completed on by Venture Two. Work on this project is expected to begin in the 2nd period of 2023.
Fund’s financial advisory
Together with the LPC leadership staff, MAM Real Estate (a division of Macquarie Group as well as LPC’s largest shareholder) served as the fund’s sole financial adviser and arrangement manager. Macquarie Asset Management, a global leader in innovative capital handling, includes MAM Real Estate as a member of its divisions.
Regarding Logistics Property Co.
Industrial property development firm Logistics Property Company, LLC (LPC) specializes in the purchase, construction, and administration of state-of-the-art logistics facilities. Over 55.3 million sq ft of logistical space have been built by the company since 1995, all under the direction of a diversified leadership team with an equivalent of much more than 25 years of expertise. Upwards of seventy workers for LPC are dispersed over eight locations, with headquarters in Chicago. Its present 52-building portfolio spans 23 million sq ft in strategic logistics areas throughout North America and is valued at more than $3 billion. Check logisticspropco.com or join them on Twitter (@logisticspropco) for more details.
