Black Creek Group Considers Strategic Alternatives for Industrial Property Trust
February 22, 2019 | James Sprow | Blue Vault
Black Creek Group LLC is considering strategic alternatives for Industrial Property Trust Inc., including a recapitalization or a possible sale that could bring in more than $3.5 billion, including debt, for the nontraded industrial real estate investment trust, Bloomberg News reported, citing an unnamed person with knowledge of the matter.
According to Bloomberg, the nontraded REIT’s sponsor is working with advisers and exploring possible buyers for IPT, including real estate private equity firms, sovereign wealth and pension funds. A Black Creek representative declined to comment on any plans for IPT.
Bloomberg reports that “Black Creek had explored options for IPT last year, an effort that was ultimately canceled, in part due to other sizable transactions involving warehouse owners. Last May, Blackstone Group LP agreed to buy Gramercy Property Trust in a deal that closed in October. Ivanhoe Cambridge Inc., a unit of Caisse de Depot et Placement du Quebec, agreed to buy warehouse developer IDI Logistics from Brookfield Asset Management Inc. for about $3.5 billion and later sold half its stake to Oxford Properties Group, the real estate arm of Canadian pension fund OMERS.”
As of September 30, 2018, the REIT owned and managed, either through direct ownership or minority interests in joint ventures, a total real estate portfolio that included 286 industrial buildings totaling approximately 49.2 million square feet that were 89.2% occupied (90.7% leased) to 513 customers in 26 markets throughout the U.S. Of the total portfolio, 48 buildings totaling approximately 11.5 million square feet were owned and managed through joint ventures. From January 2014 through September 30, 2018, the REIT had acquired, either directly or through a minority ownership interest in its joint ventures, 301 buildings comprised of approximately 51.3 million square feet for an aggregate total purchase price of approximately $3.9 billion.
The REIT’s most recent net asset value per share was $12.33, based on the number of shares issued and outstanding as of November 30, 2018. Previously, as of November 30, 2017, the estimated net asset value per share was $11.11. This represents an 11% increase in 12 months. In addition, the REIT was paying distributions at the annualized rate of 5.70% to Class A shareholders, based upon the original issuance price in 2013 of $10.00 per share. Class T shareholders were receiving distributions at an annualized rate of 4.80%, net of fees, based upon the original offering price. As of September 30, 2018, there were approximately 105,514,000 Class A shares and 70,992,000 Class T shares issued and outstanding.
Sources: Bloomberg News, Blue Vault, S&P Global
Learn more about Black Creek Group on the Blue Vault Investment Manager page
Blue Vault has been an important partner to Geneos in providing us and our advisors pertinent information about non-traded products and the industry as a whole. The annual BD Summit is a valuable due diligence experience for any broker dealer."