WPT Industrial REIT Acquires U.S. Logistics Portfolio for $226M
TORONTO — WPT Industrial Real Estate Investment Trust, a publicly traded company based in Toronto, has increased its U.S. holdings by agreeing to acquire a 13-property logistics portfolio for approximately US$226 million. The industrial buildings total 2.2 million square feet and are situated in infill submarkets across the United States.
The property names and addresses were not disclosed, but WPT says the portfolio will increase its scale in Chicago, Milwaukee and Minneapolis. The portfolio also includes assets in three new markets for the REIT, including Los Angeles and Miami.
Additionally, WPT has confirmed that eight of the assets are leased to a single tenant and the other five are leased to multiple tenants.
“We are very pleased to source a high-quality portfolio acquisition that advances the REIT’s strategic priorities to add scale and diversification with a focus on markets and properties that have the greatest potential to drive long-term growth,” says Scott Frederiksen, CEO of WPT.
WPT plans to fund the acquisition with cash on hand and proceeds from its senior unsecured credit facility. In anticipation of the purchase, WPT has received lender commitments to amend and extend the credit facility from US$300 million to $450 million.
The REIT expects the portfolio acquisition to close within the next 30 days, subject to satisfaction of customary closing conditions. The buyer was not disclosed.
WPT Industrial REIT acquires, develops, manages and owns industrial properties located in the United States, focusing on warehouses and distribution centers. The REIT’s operating subsidiary, WPT Industrial LP, indirectly owns a portfolio of properties located in 15 states spanning nearly 19 million square feet. The portfolio comprises 56 industrial assets and one office property.
WPT Industrial REIT trades on the Toronto Stock Exchange. The company’s stock price closed Monday, March 25 at US$13.84 per share, up from $12.91 a year ago.
— John Nelson