iStar Sells Net Lease Portfolio for $3.07B
The company has completed the previously announced sale of its 18-million-square-foot portfolio to Carlyle’s global credit platform.
NEW YORK, NY – iStar Inc. has completed the previously announced net lease asset portfolio sale to an affiliate of Carlyle’s global credit platform for $3.07 billion.
The portfolio comprises 18.3 million square feet of institutional quality office, industrial and entertainment properties situated throughout the US.
In Q1, iStar currently estimates that the sale will generate a positive impact of $570 million to net income allocable to common shareholders, $580 million to common equity and $310 million to adjusted common equity.
After associated fees, distributions to the firm’s joint-venture partner, repayment of debt collateralized by the assets, repayment of its senior secured term loan, distributions under its long-term incentive plan and other costs, iStar estimates that the transaction will generate net cash proceeds of $1.2 billion back to the company.
“The sale of this net lease portfolio represents a meaningful step forward in the strategy we laid out at the beginning of last year to simplify our business and strengthen our balance sheet,” states Jay Sugarman, iStar chairman and CEO. “As a result, we’ll be able to capture a significant gain, de-leverage the balance sheet and pay off nearly all of our secured debt, enabling us to continue scaling the ground lease ecosystem.”
In Q1, the company also sold separate net lease assets for a total gross purchase price of $108 million, which is expected to generate additional positive impacts.