Canadian WPT Industrial REIT (WPT), a publicly traded real estate investment trust, listed on the Toronto Stock Exchange, has agreed to acquire a portfolio of 26 U.S. distribution and logistics properties and one 85-acre land parcel from an affiliate of Pure Industrial Real Estate Trust for US$730 million, representing a going-in capitalization rate of 5.5% and a stabilized capitalization rate of 5.9%.
The portfolio, totaling approximately nine million square feet of gross leasable area (GLA), contains a mix of single-tenant and multi-tenant properties located in eight U.S. states, expands WPT’s presence in the high-barrier coastal markets of New Jersey, California and Florida, and strengthens the REIT’s presence in other key U.S. distribution markets. The portfolio also contains a mix of globally and nationally recognized tenants, supporting the overall credit quality of the REIT’s tenant base.
The acquisition also includes 85 acres of developable land in Dallas, Texas, providing the REIT with the opportunity to construct up to 1.4 million additional square feet of GLA.
“This is a compelling transaction for the REIT – we add meaningful scale, high-barrier market concentration, functional assets, quality tenancies and future value enhancement opportunities – all while delivering immediate accretion to the REIT’s FFO and AFFO per unit. Our ability to source a large, accretive off-market transaction in the highly-competitive U.S. industrial market underscores the depth of experience, market relationships and reputation for execution and follow-through of our team,” said Scott Frederiksen, Chief Executive Officer of the REIT.
“We expect the acquisition and related equity offerings, coupled with the recent Canadian-dollar listing of the REIT’s units, will also meaningfully improve our public float and trading liquidity, moving the REIT closer to inclusion in relevant market indices” added Scott Frederiksen.
The acquisition significantly increases the size and scale of WPT’s portfolio to approximately US$2.3 billion, with a 39% increase in total GLA to approximately 32 million square feet, enhancing the REIT’s ability to leverage its fully internalized management platform, said the company in a statement.