Manulife Investment Management has entered into a partnership with StepStone Real Estate for the recapitalization of a 10.4 million-square-foot industrial portfolio owned by Scannell Properties. The 35 properties are valued at $1.2 billion and are all recently constructed Class A industrial buildings spread across 17 U.S. markets.
The deal secured capital in the form of additional liquidity for Scannell Properties’ portfolio. It also provides a strong opportunity for Manulife to access well-positioned properties and capitalize on long-term demand for logistics space in the current industrial sector, said Manulife Investment Management’s Head of U.S. Acquisitions & Capital Markets Jessica Harrison, in prepared remarks.
The partnership will work to execute the business plan of the portfolio, including building completions, lease-up deals, executing financing and disposition strategies to further stabilize it.
A growing industrial portfolio
Scannell Properties’ pipeline includes build-to-suit and speculative industrial projects spread across the U.S., Canada and Europe. According to CommercialEdge data, the company has more than 3.4 million square feet of industrial space under construction across several markets in the U.S. alone.
Recent projects include a 479,000-square-foot distribution and manufacturing facility in Salem, Ore. The company broke ground in November on the build-to-suit project, developed on behalf of Gensco Inc.
In late 2022, Scannell signed a 1 million-square-foot lease at Gardner Logistics Park, in Locust Grove, Ga. A logistics and transport company inked the agreement at the Class A development’s 1.5 million-square-foot building. When fully completed, Gardner Logistics Park will encompass more than 4 million square feet.