AIG Global Real Estate Joint Venture Targets Southeast Industrial Assets

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AIG Global Real Estate (AIG GRE) and LB Asset Management have joined forces to co-invest in an 8.6 million-square-foot portfolio of U.S. industrial properties, the companies announced Monday.

The joint venture was formed to invest on behalf of three Korean institutional investors. The portfolio includes 86 industrial properties, primarily located across the Southeastern U.S. AIG GRE will manage the assets, which have a combined total value of more than $1 billion.

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JLL Securities served as financial advisor to AIG GRE on the deal.

“With continued in-migration and population growth driving the relocation of major business and research centers to the region, combined with the transformative impact of E-commerce, we are very excited for the prospects of the Southeastern industrial market,” Doug Tymins, president and CEO of AIG GRE, said in a statement. “In partnership with LB Asset Management, we look forward to further expanding our industrial portfolio with this addition of high-quality assets in sought-after markets.”

The JV expands AIG GRE’s industrial portfolio into what company officials describe as markets with “high-growth potential in the states of Virginia, Georgia, North Carolina and Tennessee. AIG GRE was founded in 1987 and is the global real estate equity investment manager of American International Group.

The industrial portfolio represents the 36th real estate fund for LB Asset Management since its founding in 2016. The Korea-based real estate fund management company also invested in an Amazon logistics center — located in Edinburgh, Scotland — with KB Securities last year for $86.5 billion.

“This joint venture with AIG Global Real Estate is a significant milestone for our firm,” LB Asset Management Managing Director Yun S. Cho said in a statement. “The portfolio is uniquely positioned in product type and geography and provides an opportunity to achieve immediate scale in the U.S. industrial market.”

Andrew Coen can be reached at acoen@commercialobserver.com.