– J.P. Morgan Asset Management closed J.P. Morgan Net Lease Real Estate Fund II with $1.1 billion in total capital commitments.
– The fund closed more than double its initial $500 million target.
– It is the firm’s first fund raised following its 2023 acquisition of TRIO Investment Group, building on the foundation of Trio Net Lease Fund I.
– The investor base spans the U.S., Asia-Pacific and Middle East, with commitments from pensions, endowments, insurers and private wealth investors.
– More than half of the investors are new to J.P. Morgan Asset Management Real Estate Americas.
– The strategy focuses on single-tenant properties with long-term triple-net leases, particularly supply-chain-critical industrial assets and industrial outdoor storage across the U.S.
– The fund is targeting secular trends including U.S. manufacturing growth, onshoring and rising demand for industrial space.
– It is also positioned to benefit from increased sale-leaseback activity, driven by companies seeking private capital to strengthen their balance sheets.
– Jed Laskowitz, Global Head of Private Markets and Customized Solutions at J.P. Morgan Asset Management, said strong demand enabled the firm to close the oversubscribed fund quickly, despite the challenging real estate fundraising environment.
– Chad Tredway, Global Head of Real Estate at J.P. Morgan Asset Management, said net lease will remain a strategic focus and highlighted its potential for durable, long-term income.
