Search this blog:
Follow Avison Young:

Wednesday, November 13, 2013

Hillwood Strikes Again

Hillwood Forms Massive New Industrial Fund

by Erik Foster (Chicago)

Foreign capital is continuing to work its way into US industrial assets in a big way.  Dallas-based Hillwood, the real estate and investment company owned by Ross Perot, Jr., is the latest to do so, again.  They have closed a new fund with a major sovereign wealth fund partner that is expected to deploy more than $1 billion into industrial real estate over the next four years.  More than half of the venture's $400 million in equity has already been identified and committed.

This is the second time Hillwood has worked with this sovereign wealth fund, which it chose not to disclose.  Their prior equity partnership was with the Canadian-based Brookfield Asset Management based in Toronto.  

This announcement continues to reinforce the strength of the industrial real estate market and the appetite investors have for this type of stable asset.  I expect their real estate investment to continue to expand in core markets and also into select Class B properties in key markets, such as Chicago, Southern California and New Jersey where Hillwood sees value; others are doing the same. (See our related white paper on Investment in Class B industrial assets.)

Hillwood announced a similar partnership with Brookfield Asset Management in March 2012. That joint venture, which also had an equity commitment of $400 million, said it expected to deploy up to $1 billion into industrial real estate within the first three years. 

In both cases, the very experienced experienced team at Hillwood is handling the acquisitions, developments, investments and management of the industrial properties.

The postings on this site are those of the bloggers and do not necessarily represent the views or opinions of Avison Young.