Industrial Logistics Properties Trust Completes Last Deal in $680M Joint VenturePosted by: jhon | Posted on: April 1, 2020
NEWTON, MA—Locally-based Industrial Logistics Properties Trust reports it has closed on the 12th and final property included in its previously announced $680-million joint venture with an Asian institutional investor.
The property is 100% leased to Amazon. The Asian investor contributed approximately $26 million for the 12th property in addition to the approximately $82 million contributed for the initial 11 properties last month. The investor owns a 39% equity interest in the joint venture and ILPT owns the remaining 61% equity interest in the joint venture.
ILPT previously reported that the 12th property is located at 3350 Laurel Ridge Ave. in Ruskin, FL that is leased to Amazon.
The joint venture also assumed approximately $57 million of existing secured debt on the 12th property in addition to $350 million of secured debt on the initial 11 properties.
John Murray, president and CEO of ILPT, stated, “We are pleased to announce the closing of the 12th and final property included in our first joint venture transaction. With the current uncertain market conditions, we want to reaffirm with our stakeholders that we remain dedicated to executing on our business strategies to find opportunities for potential growth and value enhancement at ILPT.”
The 12 industrial properties contain an aggregate 9.2 million square feet and are located in nine states. As of Dec. 31, 2019, the properties were 100% leased for a weighted average remaining lease term (by annualized rental income) of 7.5 years.
ILPT expects to use the proceeds from this transaction to reduce outstanding borrowings under its $750-million unsecured revolving credit facility.