CBRE Trust forms $800m JV to buy industrial projects.

Duke Realty Corporation and CB Richard Ellis Realty Trust have entered into a joint venture that will acquire from Duke up to $800 million of newly developed bulk industrial build-to-suit projects over the next three years.

Duke and CB Richard Ellis Realty Trust have initially identified six properties for acquisition. These properties contain a total of approximately 5.2 million square feet and have an agreed value of approximately $250 million.

In addition, Duke and CB Richard Ellis have agreed to expand the venture to include additional bulk industrial build-to-suit projects to be developed by Duke over the next three years. Properties would be contributed to the venture upon completion. Duke will also receive asset management, property management, construction management, development and leasing fees in connection with services provided to the venture. The venture anticipates holding its properties long-term.

"This venture will allow Duke to retain an interest in key bulk industrial build-to-suit projects, recycle a significant amount of capital, and strengthen its private capital track record with the ultimate goal of launching additional funds," commented Denny Oklak, chairman and chief executive officer of Duke. "To that end, we are pleased to be working with CB Richard Ellis Realty Trust."

"CB Richard Ellis Realty Trust is excited to partner with one of the pre-eminent industrial developers in the U.S.," commented Jack Cuneo, president and chief executive officer of CB Richard Ellis Realty Trust. "The venture provides us exclusive access to a pipeline of newly constructed, institutional quality industrial properties around the country."

Duke Realty Corporation specializes in the ownership, construction, development, leasing and management of office, industrial, medical office and retail real estate. It is the largest publicly traded, vertically integrated office/industrial real estate company in the United States and owns, manages and has under development more than 122 million rentable square feet in 24 major U.S. cities. Duke also controls approximately 7,600 acres of land potentially representing more than 111 million square feet of future development.

CB Richard Ellis Realty Trust is a public, non-listed real estate investment trust that is sponsored by CB Richard Ellis Investors, LLC, a wholly-owned subsidiary of CB Richard Ellis Group, Inc., and advised by CBRE Advisors LLC, an affiliate of CB Richard Ellis Investors, LLC.