ILPT Closes $206M Disposition of 6 Assets

Industrial Logistics Properties Trust, of Newton, Mass., has agreed to sell six industrial properties to its existing joint venture with institutional investors for an aggregate price of approximately $206 million, the REIT announced Monday.

The properties total 2.5 million square feet and are fully leased for a weighted average remaining lease term of 4.0 years. ILPT continues to own a 22 percent equity interest in the joint venture.

2373 Global Drive, Columbus, Ohio. Image via Google Street View

The joint venture plans to incur about $134 million of debt secured by the properties in early 2022, which will result in total net proceeds to ILPT of about $190 million. ILPT intends to use those proceeds and subsequent debt financing to reduce outstanding borrowings under its $750 million unsecured revolving credit facility.

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The assets that contributed to the joint venture, with their respective tenants, are:

• 2353 Global Drive, Columbus, Ohio; Expolanka USA Inc.
• 2373 Global Drive, Columbus, Ohio; Expolanka USA Inc
• 16920 W. Commerce Drive, Goodyear, Ariz.; Amazon.com Services Inc.
• 6380 E Holmes Road, Memphis; Flextronics International
• 481 Airport Industrial Drive, Southaven, Miss.; Bound Tree Medical, Bunzl, WPG Americas
• 8474 Market Place Drive, Southaven, Miss.; StyleCraft Home Collection

Expolanka is a Sri Lankan conglomerate and the owner of logistics company EFL.

The joint venture is managed by The RMR Group, which also manages ILPT.

ILPT’s portfolio comprises more than 290 properties totaling about 36 million rentable square feet, leased to more than 260 tenants in 33 states.

Continuing growth

In a prepared statement, ILPT President & CEO John Murray noted that 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,” he added.

In January, ILPT acquired a 645,000-square-foot distribution center in Gardner, Kan., in metro Kansas City, from USAA Real Estate for $44 million.