If you like steady rent checks, you're in good company. Cerberus said Tuesday it sold Tenet Equity to CBRE Investment Management for $1.6 billion. The buyer, a unit of CBRE Group Inc., executed the deal for multiple investment strategies it runs.
Here is the draw: in a net-lease, tenants pick up costs that traditional landlords usually cover, like property taxes, maintenance, and insurance. Owners can also unlock capital by selling buildings to a net-lease landlord and leasing them back. For many money managers, the reliable cash flows are the headline appeal.
CBRE Investment Management said it plans to boost its net-lease assets to help Tenet scale. The move tracks a broader wave. Since Tenet's launch, managers such as Blue Owl Capital Inc. and Carlyle Group Inc. have entered the sector, and LCN Capital Partners - a net-lease platform - is being purchased by Goldman Sachs Group Inc. in a $410 million transaction. As Bob Davenport, Cerberus's global head of corporate credit, put it: "The net-lease asset class sits at the intersection of corporate credit and real estate." Cerberus oversees $72 billion across strategies in credit, real estate, and private equity.
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Net-lease can look boring, and that is the point: predictable rent tied to corporate tenants. With a heavyweight buyer planning to add more of it, the competition for stable income properties is likely to stay active. If you track income-oriented real estate, this is a reminder that the hunt for dependable cash flow is very much on.
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