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CHICAGO-First Industrial Realty Trust Inc. has formed a net-lease co-investment program with UBS Wealth Management-North American Property Fund Ltd. The fund is managed and advised on behalf of the international clients of UBS AG, a world-wide financial institution.

According to information released by First Industrial, the program will target long-term single-tenant net-lease industrial properties throughout the US during the next seven to 10 years.

UBS is allocating up to $255 million in equity, or 85% equity interest, while First Industrial is expected to co-invest up to $45 million in equity, making up the remaining 15%. Based on expected leverage of 60% to 70%, company execs estimate that the total capitalization of the program could reach approximately $900 million. First Industrial will manage the properties through its US offices.

Mike Brennan, president and chief executive officer of First Industrial, says the co-investment program expands the REIT's "capability to serve corporate America's industrial real estate needs."

Mike Havala, chief financial officer, adds that with the addition of the program, First Industrial has increased its capital base to nearly $3 billion during the past 12 months, "in the form of co-investment capital either already invested or potentially available." Wachovia Capital Markets, LLC served as advisor to First Industrial Realty Trust, Inc.

Instant Insights /

First Industrial and UBS Form Investment Partnership With $900M Potential

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