Key Takeaways
- • Cerberus Capital Management sold Tenet Equity, its net-lease business holding over 200 U.S. properties, to CBRE Investment Management for $1.6 billion, according to Briefs Finance.
- • The buyer, a unit of CBRE Group Inc., executed the acquisition for multiple investment strategies it manages and plans to increase its net-lease assets to help Tenet scale.
- • The deal comes amid rising institutional interest in net-lease real estate, with Blue Owl Capital and Carlyle Group entering the sector and Goldman Sachs agreeing to acquire LCN Capital Partners for $410 million.
- • Cerberus, which manages $72 billion across credit, real estate, and private equity, framed net-lease as sitting at the intersection of corporate credit and real estate, per Bob Davenport, its global head of corporate credit.
Summary
Cerberus Capital Management has sold Tenet Equity, its net-lease business, to CBRE Investment Management for $1.6 billion, the source reported. Cerberus announced the transaction on Tuesday. The buyer, a unit of CBRE Group Inc., completed the deal on behalf of several investment strategies it runs. Tenet holds more than 200 U.S. properties.
Net-lease structures shift costs such as property taxes, maintenance, and insurance to tenants, which typically leaves owners with predictable rent from corporate tenants. Owners can also raise capital by selling properties to a net-lease landlord and leasing them back. The source notes that reliable cash flow is the primary appeal of the strategy for many money managers.
CBRE Investment Management said it plans to expand its net-lease assets to help Tenet scale. The transaction reflects broader activity in the sector. Since Tenet's launch, Blue Owl Capital Inc. and Carlyle Group Inc. have entered the space, and Goldman Sachs Group Inc. is acquiring LCN Capital Partners, a net-lease platform, in a $410 million transaction.
Bob Davenport, Cerberus's global head of corporate credit, said that "the net-lease asset class sits at the intersection of corporate credit and real estate." Cerberus oversees $72 billion across credit, real estate, and private equity strategies. The source suggests that continued competition for stable income properties is likely as a large buyer adds to its net-lease holdings.
Net-lease structures shift costs such as property taxes, maintenance, and insurance to tenants, which typically leaves owners with predictable rent from corporate tenants. Owners can also raise capital by selling properties to a net-lease landlord and leasing them back. The source notes that reliable cash flow is the primary appeal of the strategy for many money managers.
CBRE Investment Management said it plans to expand its net-lease assets to help Tenet scale. The transaction reflects broader activity in the sector. Since Tenet's launch, Blue Owl Capital Inc. and Carlyle Group Inc. have entered the space, and Goldman Sachs Group Inc. is acquiring LCN Capital Partners, a net-lease platform, in a $410 million transaction.
Bob Davenport, Cerberus's global head of corporate credit, said that "the net-lease asset class sits at the intersection of corporate credit and real estate." Cerberus oversees $72 billion across credit, real estate, and private equity strategies. The source suggests that continued competition for stable income properties is likely as a large buyer adds to its net-lease holdings.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.