VEREIT, Inc. (NYSE: VER) announced today it has closed on the previously reported institutional partnership which includes six assets totaling approximately $407.0 million and 4.8 million square feet of industrial assets with investment grade tenants. These assets make up the initial portfolio of a new Korea Investment & Securities Co., Ltd. (“KIS”) industrial fund which will be advised by Ocean West Capital Partners LLC (“Ocean West”). VEREIT was represented by Mark Penrod, Managing Director, and Daniel Prendiville, Vice President, at Eastdil Secured, L.L.C. (“Eastdil Secured”).
“VEREIT remains focused on building the strength of our balance sheet and we are pleased to have identified an institutional partner with objectives in line with our own. As VEREIT and Ocean West create a long-term asset base with investment grade tenants in the U.S. market, we look forward to expanding our presence through maximizing the value in a business growth format,” stated Glenn Rufrano, Chief Executive Officer, VEREIT.
The stakeholders have agreed to a traditional 80/20 equity structure. The portfolio of industrial assets is currently 100% leased and located across five different states. The investment was made at a capitalization rate just under 6.0%.
“We are pleased to partner with Ocean West and KIS on the initial industrial portfolio and look forward to growing the partnership by acquiring individual or portfolios of investment grade industrial assets nationwide,” stated Thomas W. Roberts, Executive Vice President and Chief Investment Officer, VEREIT.
As part of the agreement, VEREIT’s in-house infrastructure of acquisitions, property management, legal, leasing and asset management teams will work to maximize each asset to increase value for the portfolio.
Russ Allegrette, Principal at Ocean West, said, “At the center of this deal is VEREIT’s extremely high-quality portfolio of industrial assets. VEREIT and Ocean West are strong partners with the right foundation to achieve growth through future acquisitions.”