The loan was arranged through a syndicate of three banks: WestLB, PNC Bank, and Regions Bank. First Industrial's interim chief executive W. Ed Tyler says the ability to execute the loan at attractive terms in the current challenging credit environment "reflects the quality of our joint venture assets, our sponsorship, and our joint venture partner."
In September, CalSTRS and First Industrial extended their agreement for five joint ventures through to December 2018 and extended the investment periods through 2011. These include FirstCal 1, the $1.6-billion Development and Repositioning JV; FirstCal 3, the $1.6 billion Strategic Land and Development JV; FirstCal 3, the $1 billion 2005 Core JV, the $475-million FirstCal Europe JV and the $285-million FirstCal Canada JV. The move was reportedly due in part to the fact that they are having trouble finding investment opportunities at prices they believe are beneficial.
Earlier this week, First Industrial revealed it was ending its European operations as part of a larger cost cutting and realignment program . "We are positioning the company for the challenging economic and industry environment through additional actions to streamline expenses," said Tyler.
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