Atlas Holdings Launches Industrial CRE Platform With $300M Portfolio Buy
With a combination of equity and debt capital, the new venture could support upward of $1 billion in investments.
Atlas Holdings LLC, a Greenwich, Conn.,-based private investment and equity firm, has formed Atlas Properties, a real estate industrial investment platform that launched with the purchase of a 23-property portfolio of mission-critical industrial real estate for $300 million.
The firm’s earlier investments have been in a variety of sectors including manufacturing and distribution. Image by Adrian Sulyok via Unsplash
Atlas Properties investors have committed more than $500 million of additional equity capital, which in combination with market debt financing, will support more than $1 billion of future growth opportunities.
Further details about the initial portfolio, including the seller or sellers and locations of the national portfolio, were not disclosed.
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Founded in 2002, Atlas and its affiliates own and operate 27 companies with 300 facilities across the globe. The firm’s investments have been in numerous sectors including automotive, building materials, capital equipment, construction services, food manufacturing and distribution, metals processing, packaging, paper, power generation, printing, pulp, supply chain management and wood products. The companies generate approximately $16 billion in revenues annually.
Significant real estate footprints
Tim Fazio, Atlas co-founder & managing partner, said in a prepared statement Atlas has built extensive knowledge of industrial real estate through its businesses which have significant real estate footprints. He said the formation of Atlas Properties is a natural progression of the firm’s investment strategy and is fully consistent with its longstanding practice of investing in areas where its sector and operating experience give it a competitive edge.
Atlas Principal Greg Blake, who joined the firm in 2021 to develop its value creation strategies through the large and growing real estate portfolio owned by its entities, said in prepared remarks that Atlas portfolio companies have previously monetized real estate assets in the sale-leaseback market through one-off transactions. The creation of Atlas Properties will enable the firm to leverage its knowledge of industrial credits, property types and the underlying mission criticality of real estate owned by companies in key Atlas industry sectors, Blake noted.
Proskauer Rose LLP served as legal advisor to Atlas for Atlas Properties.
Recent acquisitions
Atlas announced several acquisitions last year that included real estate properties. In early October, the firm closed on the purchase of Varsity Brands Herff Jones Graduation Business, which included the Scholastic and Collegiate brand portfolio and its manufacturing facilities. Products include commencement caps and gowns, fine paper, jewelry and frames.
In September, Atlas signed a definitive agreement to purchase two Canadian pulp mills from West Fraser Timber Co. Ltd.—the Quesnel River Pulp mill in Quesnel, British Columbia, and the Slave Lake Pulp mill in Slave Lake, Alberta.
Earlier in 2023, Atlas agreed to acquire US Farathane from The Gores Group. Headquartered in Auburn Hills, Mich., USF provides automotive products and services to customers including General Motors, Ford, Stellantis, Tesla, Toyota, Honda and Rivian. USF has 18 manufacturing facilities in the U.S., Mexico and China.
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