Abu Dhabi Investment Authority (ADIA) has joined hands with Rockpoint, a Boston-based real estate investment management firm, to form a platform to explore industrial investment opportunities representing approximately $2 billion in gross asset value.
The new investment vehicle will focus primarily on build-to-core industrial investments in high barrier-to-entry locations across infill, demand-driven, gateway and growth markets in the US
This platform follows Rockpoint’s announcement in February 2021 that the firm had formed a strategic partnership with leading industrial real estate investor and operator Ben Harris.
This strategic partnership has generated and is expected to continue to generate significant industrial investment opportunities for Rockpoint’s existing opportunistic and growth and income funds in addition to opportunities for the new platform.
Harris is an industrial sector veteran with over 24 years of multi-cycle experience, and has acquired, developed and/or operated nearly 500 million square feet of industrial properties across 50 markets.
Another Abu Dhabi-based sovereign wealth fund, Mubadala Investment Co., partnered with Crow Holdings to develop $1 billion of Class A industrial properties in the US in 2021. Neither company disclosed how much each side was committing to the venture.
Aligns With ADIA’s Approach
Mohamed Al Qubaisi, Executive Director of the Real Estate Department at ADIA, said, “We have built a sizeable portfolio of industrial real estate assets and continue to see attractive opportunities in the sector. This new platform with Rockpoint aligns with our approach of investing with proven partners to target specific areas of value.”
Concurrently, the platform announced the closing of its first investment, 865 Embedded Way, a 117,520 square foot, class A industrial development project on a 10.6-acre site, located in Silicon Valley’s supply-constrained South San Jose submarket.
“We are excited to partner with ADIA in a lower-risk vehicle that complements our existing funds and allows us to continue expanding our capabilities and platform in the industrial sector,” said Bill Walton, Co-Founder and Managing Member at Rockpoint.
Concurrently, the platform announced the closing of its first investment, 865 Embedded Way, a 117,520 square foot, class A industrial development project on a 10.6-acre site, located in Silicon Valley’s supply-constrained South San Jose submarket. According to public documents, the property was purchased for $15,699,500.
Industrial real estate has been attractive to investors during the pandemic as the sector has boomed. Data released by Savills shows asking rents across the country rose 8% but varied widely by region. In northern New Jersey in the US, for instance, rents jumped a dramatic 23%.
Meanwhile, vacancy at the end of 2021 stood at just 4.4%. About 579 million square feet were absorbed last year, while 387 million square feet were delivered.