Jera and Invesco JV to Acquire $3B in Industrial Assets
The JV’s investment timeline is over the next three to five years.
Invesco Real Estate and Jera Asset Management have formed a joint venture called Mercury Trust to purchase up to $3 billion in industrial assets over the next three to five years.
Mercury Trust will acquire industrial real estate focusing on distribution centers, logistics properties, and cold storage warehouses. The joint venture was seeded with nearly $500 million of assets throughout the country acquired or under contract to be acquired in the near future. To help fund future acquisitions, Mercury Trust obtained a credit facility totaling $675 million.
On behalf of an institutional client, Invesco Real Estate made a significant equity commitment for investment in future acquisitions through Mercury Trust. “We are pleased to enter this partnership with Jera through Mercury Trust and look forward to growing the relationship,” commented Greg Kraus, managing director and head of transactions at Invesco Real Estate. “We share Jera’s positive outlook on the industrial space, and the opportunities the sector presents.”
Jera is a national real estate investment firm that focuses on properties that are net-leased to quality credit tenants. Jera Managing Partner David Kay called the newly formed Mercury Trust “a momentous occasion” for his firm. “This venture continues our strategy of partnering with world-class institutions that not only give us financial backing but scale that will enable us to be a leader in the industry,” he said in a prepared statement.
Jera and Invesco are among the many firms amassing a war chest to pursue industrial assets. Earlier this month, Dermody Properties LLC closed its third commingled fund, having raised $1.1 billion. The fund, which exceeded its target fundraising goal of $800 million, has several investors, including public and corporate pension funds, insurance companies and other institutional investors. Dermody says nearly all of the investors from its first and second fund investors committed to DPIF III. In addition, there were significant new investors.