Business
The RMR Group Announces Closing of Inaugural $680 Million Private Capital Investment Vehicle
RMR to Manage Vehicle Focused on Investing in U.S. Industrial and Logistics Properties Initial Portfolio Consists of 12 Industrial and Logistics Properties
About this update from The Rmr Group Inc.
[{"type":"text","content":"\nRMR to Manage Vehicle Focused on Investing in U.S. Industrial and Logistics Properties\n\nInitial Portfolio Consists of 12 Industrial and Logistics Properties With 9.2 Million Square Feet\n\nRMR Expects to Substantially Grow the Vehicle in the Future\n\n NEWTON, Mass.--(BUSINESS WIRE)--\nThe RMR Group Inc. (Nasdaq: RMR) today announced the closing of a $680 million private capital investment vehicle with a large, top tier global sovereign wealth fund to invest in industrial and logistics properties throughout the U.S. RMR will manage the vehicle on behalf of its investors, which includes this new sovereign wealth fund investor (approximately 39%), an existing institutional investor in this vehicle (approximately 39%) and Industrial Logistics Properties Trust, or ILPT (approximately 22%). ILPT is an existing client company of RMR and sold the initial properties into the vehicle. RMR has entered into an asset management agreement and a property management agreement with this investment vehicle. The initial fees RMR expects to receive from this vehicle are approximately equal to fees it earned when the properties were owned by ILPT.\n\nThe $680 million investment vehicle currently owns 12 industrial properties with an aggregate 9.2 million square feet in nine states. As of September 30, 2020, these properties were 100% leased for a weighted average remaining lease term (by annualized rental income) of 6.7 years. RMR expects to substantially grow this vehicle with additional industrial and logistics properties in the future.\n\nAdam Portnoy, President and Chief Executive Officer of RMR, made the following statement regarding today’s announcement:\n\n“We are pleased to announce the launch of this inaugural RMR managed private capital investment vehicle. We believe that well located and well leased industrial and logistics properties in the U.S. are positioned to produce exceptional returns for investors in the future. We look forward to growing this vehicle through the acquisition of industrial and logistic properties in the future. We also hope that this private capital investment vehicle marks the beginning of a new line of business for RMR of managing large amounts of private capital on behalf of institutional clients for investment in core real estate assets.”\n\nAbout The RMR Group Inc.\n\nThe RMR Group Inc. is a holding compa...