Invesco, Caddis joint venture to acquire up to $1 billion in health care real estate – Atlanta Business Chronicle

Real estate Invesco, Caddis joint venture

Invesco Real Estate is joining forces with a Texas company to take advantage of the strong medical office building market.

The real estate arm of the Atlanta-based investment management company said Wednesday that it’s formed a strategic joint venture with Caddis, a national healthcare real estate firm in Dallas.

Invesco Plc. (NYSE: IVZ) said it made a "significant equity commitment" for investment in future medical office building acquisitions through a venture formed with the Caddis Acquisition Fund I that is sponsored by Caddis, according to a news release. The plan is to combine Invesco’s commitment with equity provided by the fund, allowing the joint venture to acquire up to $1 billion in "core and core-plus healthcare real estate assets" across the country during the next three to five years.

Invesco is investing on behalf of its direct investment program.

At the time of Caddis Acquisition Fund I’s first closing last November, the Fund made a simultaneous contribution to the joint venture mandate to enable the partnership’s acquisition of a $111 million 12-asset portfolio across “sunbelt” markets in the U.S., according to the release. Subsequent to closing on the initial portfolio, the partnership acquired three additional medical office buildings for $56 million. The result is 15 medical real estate assets located in Texas, Georgia, South Carolina and Florida.

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Caddis CEO Jason L. Signor said the joint venture marks the changing of its business model from being "transitional owners to perpetual owners."

Daniel Kubiak, senior director of portfolio management at Invesco Real Estate, said his company has a long track record of investment in medical office facilities through the public markets.

"The off-market acquisition provides an immediate diversified medical office portfolio with 15 assets in key markets across the ‘sunbelt’ southeast U.S. region," Kubiak said. "The assets provide a good mix of single- and multi-tenant options and fit well within our existing diversified income-focused strategy. We are looking forward to working with Caddis to add value within our existing portfolio of assets, as well as growing the portfolio over time.”

Invesco Real Estate has $66.4 billion in real estate assets under management, 471 employees and 21 regional offices across the U.S., Europe and Asia.

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