CBRE Investment Management, CBRE's global investment arm with USD 155 billion in assets under management, announced on Wednesday the acquisition of Tenet Equity's net-lease platform. The transaction comprises 208 properties across 39 US states and a total area of 12 million square feet of commercial real estate, with a volume of USD 1.6 billion.
The acquired net-lease portfolio is fully leased to middle-market commercial tenants. In net-lease agreements, tenants typically pay a lower base rent but assume the operating costs of the properties, including taxes, insurance, and maintenance. According to CBRE, the average lease term for the contracts in this portfolio is approximately 17 years.
CBRE Investment Management will collaborate with Tenet Equity, a specialist in sale-leaseback transactions and capital provider, to manage the assets and further expand the partnership's net-lease platform. Akash Shivashankara, Senior Portfolio Manager, has been tasked with leading these efforts.
Adam Gallistel, Co-CEO and Chief Investment Officer at CBRE Investment Management, highlighted in a statement that the net-lease sector offers effective protection against sustained inflation due to its long lease terms and low capital expenditure.
Gallistel further explained that they are pleased to offer clients compelling investment opportunities. This is achieved by combining their own capabilities in portfolio management and execution – along with the CBRE Group's net-lease resources – with Tenet and their proven track record in sourcing and managing mission-critical real estate.
Truist Securities advised CBRE Investment Management on this transaction. The acquisition underscores CBRE Investment Management's strategic commitment to net-lease investments and their potential for stable returns.
