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WPT, IMCO create major US industrial JV | RENX – Real Estate News EXchange

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LOGO: WPT Industrial REIT.WPT Industrial REIT (WIR-U-T) is selling a minority interest in a $370 million (all figures US) industrial portfolio to the Investment Management Corporation of Ontario (IMCO) to create a joint venture focused on the American industrial sector.

WPT’s contribution to the JV is a 13-property portfolio spread across five states and comprising about 4.75 million square feet of leasable space. The agreement will expand on an existing relationship with IMCO, which contributed $150 million to the original venture in the summer of 2020.

“The formation of a new stabilized joint venture represents meaningful progress on our capital recycling initiative and underscores the REIT’s ability to attract and expand our relationships with strong institutional capital partners,” said Scott Frederiksen, chief executive officer of WPT REIT, in the announcement Monday morning. “The transaction strengthens our balance sheet, provides additional capacity to fund our growing development pipeline, and accelerates growth in our private capital management platform.”

Properties in the WPT, IMCO joint venture

WPT REIT will manage the properties acquired by the joint venture.

The 13 properties contributed to the joint venture by WPT are:

Property

Market

Size (SF)

Year

Built/Ren

Clear

Height

#

Tenants

Avg Tenant

Size (SF)

320 East Fullerton Ave.

Chicago

263,208

1999

32

2

131,604

535 Shingle Oak Dr.

Chicago

150,000

2007

30

1

150,000

99 Ave. A.

N. New Jersey

160,575

1983/2020

26.5

1

160,575

105 Ave. A.

N. New Jersey

188,343

2020

36

1

188,343

2940 Old Norcross Rd.

Atlanta

132,394

1994

28

1

132,394

8 Mount Moriah Rd.

Atlanta

202,250

2007

28

1

202,250

6751 Discovery Blvd.

Atlanta

115,000

2001

30

1

115,000

1975 Sarasota Parkway

Atlanta

145,262

1993

25

1

145,262

1871 Willow Springs Church Rd.

Atlanta

1,512,552

2010

32

1

1,512,552

2401 Midpoint Dr.

Kansas City

180,000

2005

30

1

180,000

2440 Midpoint Dr.

Kansas City

330,000

2006

30

1

330,000

8500 Hedge Lane Terrace

Kansas City

111,000

1999

26

2

55,500

5620 Inner Park Dr.

St. Louis

1,262,648

2003

32

1

1,262,648

Total/ Average

4,753,232

2005

31

15

316,882

WPT reports the portfolio is 100 per cent leased with a weighted average lease term of approximately 5.5 years.

The JV intends to hold stabilized, income-producing properties, expands the REIT’s management fee income and includes future leasing and incentive fees.

The REIT says it is achieving slightly higher than IFRS fair value for the interest in the portfolio, which will generate approximately $255 million in sale and financing proceeds. This will be used to pay down debt and fund future developments and investments.

The funds will allow WPT to lower its debt-to-assets by four per cent on a consolidated basis and two per cent on a proportionate share basis, resulting in liquidity of $153 million.

IMCO and WPT closed on their joint first acquisition in August of 2020, a 772,800-square-foot industrial development in Burlington County, N.J. At that time, it said the two parties intended to pursue additional industrial value-add and development investments in strategic U.S. distribution and logistics markets.

“Consumers are relying on e-commerce more than ever and expect robust inventories and rapid delivery times throughout the U.S.,” said Brian Whibbs, managing director, IMCO, in its 2020 announcement. “Our joint venture with the REIT is well aligned to IMCO’s real estate strategy to invest in logistics networks that help meet consumer demands and diversify our portfolio to include industrial.

“WPT Industrial REIT has a strong track record and is a leader in the logistics space, representing the kind of resilient partner we seek for our clients and portfolio.”

Last fall, IMCO, TorQuest Partners and OPTrust created a partnership to acquire another significant logistics provider, VersaCold Logistics Services. VersaCold is one of Canada’s largest cold-storage warehousing and food logistics firms, and had been owned by KingSett Capital and Ivanhoé Cambridge. Financial terms of the transaction were not disclosed.

ABOUT IMCO and WPT

IMCO manages $70.3 billion of assets on behalf of its clients.

Its mandate is to provide broader public sector institutions with investment management services, including portfolio construction advice, better access to a diverse range of asset classes and risk management capabilities.

WPT Industrial REIT is established under the laws of Ontario. It acquires, develops, manages and owns industrial properties in the United States, with a particular focus on warehouse and distribution properties.

Its operating subsidiary WPT Industrial LP indirectly owns a portfolio of 100 industrial properties across 20 states with approximately 31.8 million square feet of GLA.

EDITOR’S NOTE: This article has been updated to clarify the timing (August 2020) of the original venture involving both WPT and IMCO.

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PGIM Real Estate, Revera Affiliate Target UK Market in Newly Formed JV

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Real Estate Sales In September

PGIM Real Estate has been active in recent months providing capital to facilitate blockbuster senior housing acquisitions. Now the firm is looking to capitalize on demand for senior housing in the United Kingdom.

The Madison, New Jersey-based real estate investor and lender announced this week it is entering into a joint venture with Signature Senior Lifestyle, an affiliate of Revera, to develop and operate senior housing communities around greater London

Mississauga, Ontario-based Revera serves 20,000 older adults in long-term care homes and retirement residences in Canada. It is also the majority shareholder of Sunrise Senior Living, one of the largest senior housing providers in the U.S. The company operates a portfolio of 12 communities in the U.K. under the Signature Senior Lifestyle brand, with one community in development that is slated to open in autumn 2021.

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The JV has one development underway — a senior housing community, or “prime care” home, in southwest London. PGIM worked with Elevation Partners, a London-based investor and asset manager in U.K. health care real estate, in sourcing, structuring and executing the venture. Additionally, PGIM will retain the firm to leverage its expertise.

PGIM and Revera did not respond to requests for comment from Senior Housing News regarding details about its development pipeline.

London is emerging as a future hotbed of senior housing development, spurred by favorable demographic growth trends and a lack of available supply, and the PGIM-Revera venture will find competition.

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Maplewood Senior Living CEO Gregory Smith told SHN last month that demand for U.K. senior housing is comparable to major U.S. markets such as New York and San Francisco, where supply has historically been constrained.

Maplewood and its investment partner, Omega Healthcare Investors (NYSE: OHI) are looking to expand its luxury Inspir brand to the U.K., and identified five suburban markets around London with high barriers to entry that are favorable for the brand’s growth.

Revera CEO Tom Wellner sees similar untapped upside potential for senior housing in the U.K.

Source: – Senior Housing News

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Where in Canada are house prices increasing the most? Maybe not where you think – CTV News

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TORONTO —
Canada saw a surge in housing prices over the past year due to COVID-19, a market trend experts say is caused by people working from home more often and moving to rural and suburban areas.

Data released by the Canadian Real Estate Association (CREA) shows that when comparing the average market prices from February 2020 to February 2021, Canada had a 25 per cent year-over-year increase. The average price rose from $542,484 to $678,091.

“One factor is that with work-from-home even more generalized, many people don’t have to live within commuting distance from their jobs,” Shaun Cathcart, senior economist at CREA, told CTVNews.ca. “That means that folks who own condos and smaller homes can take out built-up equity and move to a property that better meets their needs – as over the past year, home is not only where you eat a few meals and sleep, but also the office, your kids’ school, playground, gym, etc.”

The largest year-over-year percentage changes came from the Northwest Territories (48.1%), Nova Scotia (30.4%), Ontario (24.5%), Quebec (22.5%), and New Brunswick (20.9%).

Cathcart noted that the higher percentage change in Northwest Territories is likely due to the fact that in both February 2020 and February 2021, six homes were sold throughout the entire territory and the ones that were sold in 2021 were marked at a higher price.

When looking at the provinces and territories that had the largest upsurge in terms of price difference, Ontario sits at the top of the list with an increase of over $170,000. Northwest Territories came next, followed by British Columbia, Nova Scotia, and Quebec.

The data also shows that prices in suburban and rural areas were impacted the most and saw the biggest changes, with regions like Rideau-St. Lawrence and Sarnia-Lambton in Ontario averaging about a 50 per cent increase from the previous year.

“With people no longer having to live within commuting distance to their jobs, as long as suburban and rural areas have decent internet, they become even more attractive to families looking for more space,” said Cathcart.

Find your region and the year-over-year price and percentage change below.

Cathcart says that Canadians can expect to see sales and prices increase this year, but forecasts sales to slow down in 2022 while prices remain high.

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