Industrial Property Trust Inc. Explores Full-Cycle Options
March 21, 2018 | James Sprow | Blue Vault
Industrial Property Trust Inc. (“IPT”), a nontraded REIT program with a portfolio of U.S. industrial properties valued at around $3.3 billion, is exploring options for a full-liquidity event, including a potential sale or equity recapitalization, according to a report by Reuters on March 14.
According to Reuters, IPT has retained an investment bank to solicit interest from potential buyers, which could include private equity firms, public pension plans and other large real estate investors, the sources said this week.
The report stated that if IPT opts for a recapitalization rather than a sale, real estate investment firm Black Creek Group, which created the nontraded REIT in 2012, would continue to manage the properties.
IPT raised around $2 billion in capital in 2013 by issuing non-tradable shares to numerous private and individual investors. It has since acquired around 280 properties across the United States in a variety of industrial applications ranging from distribution to research and development.
Based in Denver, Colorado, Black Creek Group has sponsored 18 real estate investment platforms and operated more than 1,300 properties across sectors including office, industrial, retail and multifamily.
It has also developed more than $3 billion worth of properties, including 68 Walmart stores.
Valuations of industrial real estate investment trusts have climbed in recent years, as a steady rise in online shopping has boosted demand for distribution centers.
The sector has also had a recent influx of private equity interest. Last year, a Chinese buyout consortium bought Global Logistic Properties (GLP), Asia’s biggest warehouse operator, for nearly $12 billion. An industrial nontraded REIT sponsored by Black Creek, Industrial Income Trust, was sold to an affiliate of GLP in 2015.
The Reuters article referenced was prepared by Carl O’Donnell in New York.
Learn more about Black Creek Group on the Blue Vault Sponsor Focus page.
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