WPT to Buy $226M US Logistics Portfolio
The portfolio consists of 13 industrial buildings and three land parcels in multiple US markets that total 2.2-million-square feet.
TORONTO—WPT Industrial REIT, which focuses on US industrial properties, has waived diligence conditions to acquire a portfolio of 13 industrial buildings and three land parcels located in multiple US markets. The portfolio, which totals 2.2 million square feet, is trading for $226 million.
The deal is expected to close within the next 30 days.
WPT owns 56 industrial properties and one office property located in 15 US states.
The portfolio expands the REIT’s footprint in Chicago, Milwaukee and Minneapolis and adds properties in three new markets for WPT including Los Angeles and Miami. The portfolio also includes distribution properties with eight single-tenant and five multi-tenant buildings.
WPT plans to finance the deal with cash on hand and proceeds from its senior unsecured credit facility. It has received lender commitments to extend its credit facility to $450 million from $300 million with an additional $300 million accordion feature. “With the new amendment to our credit facility, we will have increased capacity and flexibility to continue our pursuit of strategic acquisition and development opportunities for the REIT,” said CEO Scott Frederiksen, in a prepared statement.
$1B Investment Play
Last July, WPT doubled down on its investment strategy in a joint venture formed with Canada Pension Plan Investment Board (CPPIB) and Alberta Investment Management Corporation (AIMCo). The purpose of the JV was to aggregate a portfolio of industrial properties in strategic US logistics markets through a value-add and development investment strategy.
The joint venture is targeting $1billion of combined equity for investment, targeting such markets as Atlanta, Chicago, Dallas, New Jersey, Los Angeles and Seattle. CPPIB and AIMCo each own a 45% interest in the joint venture and WPT owns the remaining 10% interest.