NEWTON, Mass–Industrial Logistics Properties Trust announced that it has entered into an agreement to add six industrial properties to its existing joint venture with institutional investors for an aggregate price of approximately $206 million.
The properties are 100% leased for a weighted average remaining lease term (by annualized rental income) of 4.0 years and total 2.5 million square feet. ILPT continues to own a 22% equity interest in the joint venture and the joint venture plans to incur approximately $134 million of debt secured by the properties in early 2022, which will result in total net proceeds to ILPT of approximately $190 million.
ILPT plans to use the net proceeds from the sale and subsequent debt financing to reduce outstanding borrowings under its $750 million unsecured revolving credit facility.
John Murray, President and Chief Executive Officer of ILPT, made the following statement regarding today’s announcement: “The sale of these six properties to our joint venture underscores the value of ILPT’s high-quality industrial portfolio and the strength of our relationships with strong institutional private capital partners. This transaction will enable ILPT to raise efficient equity capital that will be used to reduce leverage and increase financing capacity to fund future growth plans. With these assets, our joint venture now totals 11.7 million square feet across 18 properties in 12 states. We look forward to continuing to expand this private capital vehicle and enhancing value for ILPT shareholders over the long term.”
The list of properties contributed to the joint venture in this transaction is as follows:
2353 Global Drive, Columbus, OH
2373 Global Drive, Columbus, OH
16920 West Commerce Drive, Goodyear, AZ
6380 E Holmes Road, Memphis, TN
481 Airport Industrial Drive, Southaven, MS
8474 Market Place Drive, Southaven, MS
The joint venture is managed by The RMR Group (Nasdaq: RMR), which also manages ILPT. RMR provides property management services nationwide for nearly 1,300 properties with approximately 91 million square feet of office, industrial, medical office, life science and retail space.