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Industrial Logistics Properties Trust Announces $680 Million Joint Venture for up to 12 of its Mainland Properties
ILPT to Receive Proceeds of up to Approximately $108 Million and Own a 61% Equity Stake in the Joint Venture Selling 39% Joint Venture Equity Interest at a
About this update from Industrial Logistics Properties Trust
[{"type":"text","content":"\nILPT to Receive Proceeds of up to Approximately $108 Million and \n\n\nOwn a 61% Equity Stake in the Joint Venture\n\n\nSelling 39% Joint Venture Equity Interest at a 5.5% Capitalization Rate \n\n NEWTON, Mass.--(BUSINESS WIRE)--\nIndustrial Logistics Properties Trust (Nasdaq: ILPT) today announced that it has entered into agreements related to a $680 million joint venture with an Asian institutional investor for a select portfolio of 12 of ILPT’s mainland properties. The investor will contribute approximately $108 million for a 39% equity interest in the joint venture and ILPT will own the remaining 61% equity interest in the joint venture. ILPT closed the joint venture with 11 properties and the investor will initially contribute approximately $82 million. The joint venture also assumed $350 million of existing secured debt on the portfolio. A twelfth property and $57 million of additional associated debt is expected to be contributed later, subject to certain conditions.\n\n\nILPT expects to use the proceeds from this transaction to reduce outstanding borrowings under its $750 million unsecured revolving credit facility.\n\n\nThe 12 industrial properties contain an aggregate 9.2 million square feet and are located in nine states. As of September 30, 2019, these properties were 100% leased for a weighted average remaining lease term (by annualized rental income) of 7.6 years.\n\n\nJohn Murray, President and Chief Executive Officer of ILPT, made the following statement about today’s announcement:\n\n\n“Completion of this joint venture transaction underscores the value of our mainland portfolio, reduces leverage and establishes a private capital partner for possible future growth at ILPT. The majority of the properties in this transaction were acquired in 2019 as part of two portfolio acquisitions and less than a year later the JV equity interest in the 12 property portfolio is being sold at a 5.5% cap rate based on full year 2019 actual cash NOI. Using these proceeds to reduce our debt will lower our reported net debt to annualized EBITDA ratio by approximately 0.6x. We are excited to have created a vehicle that may be able to raise and deploy additional private capital and to begin this venture with a well funded institutional investor that can help us fuel future value for ILPT’s shareholders.”\n\n\nThe list of properties i...