TPG acquires majority of Oxford’s industrial land in GTA

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Ontario Construction News staff writer

Alternative asset management firm TPG has purchased a 75 per cent stake in two GTA industrial business parks from developer Oxford Properties Group for $1 billion.

Oxford will continue to manage the two properties in Brampton and Vaughan, a combined 5.1 million square feet. Tenants include Mondelez, Best Buy, Campbells, and Olympia Tile.

“We see the GTA as one of the most attractive industrial markets globally, with strong real estate fundamentals and population and employment growth outpacing many major U.S. markets,” said Jacob Muller, partner at TPG. “We have followed the Canadian industrial sector for several years, and believe this joint venture provides a unique opportunity to enter the market at scale through the acquisition of some of the highest quality industrial assets in all of Toronto.

“We are excited to partner with the Oxford team, which has a distinct track record in the space and deep local expertise, to support the properties and grow a leading industrial portfolio.”

Each business park includes five buildings, spanning approximately 2.9 million square feet in Brampton and approximately 2.2 million square feet in Vaughan.

“Oxford is a long-time believer in Canadian Industrial, where we have built up a phenomenal portfolio over the past 15-plus years, and we continue to see strong underlying fundamentals within this asset class,” said Jeff Miller, head of North American industrial at Oxford Properties. “Attracting a partner of TPG’s calibre to our Canadian portfolio speaks not only to the quality of these assets, but also the value generated by our active asset management which has improved these assets over time and brought them to full occupancy.

TPG has invested or committed approximately US$1.6 billion of equity in industrial real estate over the past decade, primarily in scaled portfolios and platforms in the U.S. and Europe.

“The GTA remains one of the best performing industrial markets in North America, and, as of Q3 2023, enjoys a sub 2 per cent availability rate,” said Milos Dajic, vice president of investments at Oxford Properties. “It remains a high barrier to entry market, with new construction representing less than 2% of the existing stock.”

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