JLL represents Scannell Properties and Manulife Investment Management in $463 million financing of newly delivered industrial product

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JLL's Capital Markets group secures $463 million financing for 13-property portfolio of Manulife Investment Management and Scannell Properties recapitalization

Insights

Financial Analyst

The arrangement of $463 million in financing for a portfolio of industrial properties by JLL's Capital Markets group signifies a robust interest in the industrial real estate sector, particularly in distribution facilities. The transaction involves a notable sum and a considerable number of properties across key markets, indicating a substantial scale of investment and potential influence on the real estate market.

From a financial perspective, the deal showcases the liquidity available even amidst a challenging interest rate environment, suggesting that lenders have confidence in the industrial property market's resilience and growth potential. This is further underscored by the properties being 50% leased on a speculative basis, with a promising leasing pipeline, which reflects strong tenant demand and could lead to stable income streams for the investors.

Oxford Properties Group's participation as a financier aligns with their strategy of investing in sectors with solid fundamentals, which in this case is the U.S. logistics market. For stakeholders, this could mean a reinforcement of the sector's attractiveness and possibly a positive outlook on their investments in similar assets.

Long-term implications may include a strengthening of the industrial real estate market, as successful refinancing deals can lead to more investments and developments in the sector. However, it is important to monitor how the properties perform in terms of occupancy and rental income, as these will be critical in determining the success of the investment and the stability of returns.

Real Estate Industry Analyst

The strategic move by JLL to refinance a large portfolio of industrial properties reflects a broader trend in the real estate market, where distribution centers and logistics properties are gaining prominence due to the rise of e-commerce and changes in supply chain management. The choice of properties in major distribution markets suggests a targeted approach to capitalize on areas with high demand for distribution services.

The fact that the properties are new constructions and already have a 50% occupancy rate indicates a healthy development pace and a market that is receptive to modern distribution facilities. For real estate investors and developers, this could signal an opportune moment to consider similar investments or developments, as the market appears to be supportive of such assets.

While the refinancing is a positive sign for the market, it is also a reminder of the importance of location and property quality in securing favorable financing terms. Investors and stakeholders should consider these factors when evaluating potential real estate opportunities, especially in a market where interest rates can impact the cost of capital and investment returns.

JLL's Capital Markets group led refinancing efforts for the five-million-square-foot facility

CHICAGO, Dec. 19, 2023 /PRNewswire/ -- JLL's Capital Markets group announced today that it has arranged $463 million in financing for a 13-property portfolio of the broader Manulife Investment Management and Scannell Properties recapitalization, which was announced last week.

JLL represented the borrowers, Scannell Properties and Manulife Investment Management, to secure financing through Oxford Properties Group.

The sub-portfolio that was financed included 13 properties located in eight major distribution markets across the country. Nearly all the buildings were built on a speculative basis and are currently 50% leased, with a strong pipeline of additional leasing, highlighting the strong demand from tenants for modern, new construction distribution facilities. 

JLL's Capital Markets team was led by Senior Managing Directors Keith Largay and Ken Martin, Associate Tara Hagerty and Analyst Tucker Dixon.

"Even in today's interest rate environment, the lending community remains highly liquid for best-in-class industrial product within strong distribution markets," Largay said.

"The execution of the sub-portfolio refinance and broader recapitalization demonstrates capital's confidence in the fundamentals of the industrial market," added Martin.

"This investment reflects our strategy to focus on larger sized credit opportunities in sectors with strong fundamentals," said Nu Suwankosai, Head of Global Credit, Oxford Properties Group. "Investing in these high-quality assets complements our strong industrial credit portfolio, and speaks to our conviction in U.S. logistics."

JLL's Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources, please visit JLL's newsroom.

About Oxford Properties
Oxford Properties Group ("Oxford") is a leading global real estate investor, developer and manager. Established in 1960, Oxford and its portfolio companies manage approximately C$85 billion of assets across four continents on behalf of their investment partners. Oxford's owned portfolio encompasses logistics, office, retail, multifamily residential, life sciences, credit and hotels in global gateway cities and high-growth hubs. A thematic investor with a committed source of capital, Oxford invests in properties, portfolios, development sites, debt, securities and real estate businesses across the risk-reward spectrum. Together with its portfolio companies, Oxford is one of the world's most active developers with over 70 projects currently underway globally across all major asset classes. Oxford is owned by OMERS, the Canadian defined benefit pension plan for Ontario's municipal employees.

About JLL 
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.9 billion and operations in over 80 countries around the world, our more than 105,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY^SM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com. 

Contact: Alli Stent, JLL
Phone: +1 330 329 6750
Email: Alli.Stent@jll.com

 

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SOURCE JLL

FAQ

What is the name of the company that arranged the financing for the 13-property portfolio?

JLL's Capital Markets group arranged the financing for the 13-property portfolio.

How much financing was secured for the 13-property portfolio?

A total of $463 million in financing was secured for the 13-property portfolio.

Who were the borrowers represented by JLL's Capital Markets group?

The borrowers represented were Scannell Properties and Manulife Investment Management.

Which group provided the financing for the sub-portfolio of 13 properties?

The financing was provided through Oxford Properties Group for the sub-portfolio of 13 properties.

How many of the buildings in the portfolio are currently leased?

Nearly all the buildings are currently 50% leased.