NEW YORK CITY—Confirming last week's published reports,  a joint venture of Abu Dhabi Investment Authority  subsidiary Henley Holding Co. and PSP Investments has closed on the acquisition of a 58-million-square-foot industrial portfolio from Exteer Property Group. The purchase price was $3.15 billion; Plymouth Meeting, PA-based Exeter maintains an interest in the joint venture and will also continue to manage the properties.

"We have great confidence in the growth potential of the US industrial sector, particularly in high-quality properties that meet the evolving logistical needs of traditional and omnichannel businesses," says Tom Arnold, head of Americas real estate at ADIA. "The Exeter portfolio fits well into our long-term real estate investment strategy, and we are pleased to have both Exeter and PSP Investments as our partners."

Exeter amassed the portfolio between 2007 and 2014, deploying capital mainly from its Exeter Industrial Value Funds I and II, CoStar Group reported last week. It consists of 209 properties across 25 key distribution markets, mainly bulk warehouses.

Eastdil Secured and CBRE marketed the portfolio on Exeter's behalf. The seller was represented by Fried, Frank, Harris, Shriver & Jacobson LLP and Silverang, Donohoe, Rosenzweig & Haltzman LLC. ADIA was represented by Kirkland & Ellis LLP, while PSP Investments was represented by Davies Ward Phillips & Vineberg LLP and Torys LLP.

The sale to ADIA and PSP marks Exeter's second large portfolio sale in recent months. This past June, it traded $317 million of industrial properties to Industrial RealtyFinance Corp.

2015 has seen several large industrial portfolios trade domestically to overseas ownership. This past February, Singapore's sovereign wealth fund, GIC Pte. Ltd., and Global Logistics Properties closed on their $8-billion acquisition of the Blackstone Group's IndCor industrial platform.

Over the summer, GLP made a second entity-level acquisition, snapping up Industrial Income Trust for $4.55 billion; the deal closed in early November. In June, Prologis and Norway's SWF, Norges Bank Investment Management, closed on a 55/45 JV to acquire KTR Capital for $5.9 billion.

A report last week from the Pennsylvania Public School Employees' Retirement System, which has committed up to $100 million to Exeter's new Exeter Core Industrial Club Fund II LP, helps explain the sector's appeal to investors. "Favorable supply-demand environment supports additional income growth, as trade and population growth continue to drive warehouse demand," according to the report. "Following several years of rent growth, in-place leases are substantially below market and will boost industrial property NOI as renewed." National vacancy levels, according to the report, had fallen to 6.1% as of this past June 30, the lowest level in 15 years.