9.28.23 | This week we recognized 4 capital-related transactions with a disclosed value of $2.4 Billion USD.
Additionally, we recognized 2 leadership changes within the industry.
Summary of Transaction Headlines
IREI | “BGO IREIT Acquires Interest in $948 Million Midwestern Industrial Portfolio”
BGO Industrial Real Estate Income Trust has announced the acquisition of an indirect 34.2 percent ownership interest in a portfolio of midwestern industrial assets (the seed portfolio) valued at approximately $948 Million (as of March 31, 2023), in exchange for 13 Million units of its operating partnership. The purchase price of the seed portfolio was approximately $130 Million. The acquisition was completed on July 7, 2023. The seed portfolio consists of 29 separate industrial buildings totaling more than 9.4 Million Square Feet located in Cincinnati, Kansas City, St. Louis, and Kenosha, Wis. developed between 2012 and 2023, the portfolio is currently 90 percent leased to multiple tenants with a weighted average remaining lease term of approximately five years. The properties house a dynamic and diverse tenant roster, featuring nationally recognized leaders in the distribution, logistics and manufacturing sectors.
Bisnow | “Brookfield in Talks to Buy $800 Million Veritas Loan Portfolio with Ballast Investments”
Canadian real estate giant Brookfield has walked away from several office and retail properties so far in 2023, but the company seems poised to plow about $800 Million into a multifamily portfolio in San Francisco. Brookfield and Ballast Investments are teaming up to purchase a bundle of troubled loans tied to apartment properties owned by Veritas Investments, the city’s largest multifamily landlord, the San Francisco Chronicle reported, citing anonymous sources. Veritas defaulted on the mortgages tied to some of its San Francisco apartment buildings, resulting in lenders placing those loans on the market. Veritas tried to purchase the loans itself but was unsuccessful. Acquiring the mortgages would give Brookfield and Ballast control of 75 apartment buildings with more than 2,100 units.
Property Week | “Brookfield Takes Control of SBB’s Education Business in £600 Million (USD $728 Million) Deal”
Canadian real estate investor Brookfield Asset Management has agreed an SEK8 Billion (£593 Million) deal giving it control of Swedish property company Samhällsbyggnadsbolaget i Norden (SBB)’s education business. SBB will sell 1.16% of its Nordic portfolio of education buildings to Brookfield Super-Core Infrastructure Partners for around SEK242 (£17.9 Million) and will receive around SEK 7.8 Billion (£578 Million) in a loan repayment from EduCo, which it co-owns with Brookfield and it the main vehicle for its public education sector business.
IPE Real Assets | “S2 Capital Adds 768 Units to US Multifamily Real Estate Portfolio”
S2 Capital has added 768 units in Texas to its US multifamily real estate portfolio. The investment manager has invested an undisclosed amount to acquire the 126-unit Falltree multifamily property in Mesquite and the 642-unit Silverbrook property in neighbouring Grand Prairie. S2Capital said it plans to enhance and reposition Falltree and Silverbrook by renovating all the units. Ryan Everett, VP of Acquisitions at S2 Capital, said the deals mark the first acquisitions for S2 in 2023 “as we have remained very patient with our capital as pricing and capital markets continue to deteriorate”.
Bridging Loan Directory | “Arrow Global Group Announce Senior Appointments”
Arrow Global Group, a leading European vertically integrated alternative asset manager specialising in private credit and real estate, is delighted to announce the appointment of two industry leaders to further accelerate its growth in Private Debt and Real Estate. Reporting directly to Zach Lewy, Founder, CEO, Chief Investment Officer, and a part of the Group’s Leadership Committee, Zachary Vaughan will serve as the Group’s Head of Real Estate and join its Investment Committee, and Toni McDermott will become the Chief Investment Officer of Credit and Direct Lending.
IREI | “Keppel REIT Management Appoints New CFO”
Keppel REIT Management Limited, as manager of Keppel REIT, has appointed Sebastian Song as CFO of the manager. Song succeeds Kang Leng Hui, who will step down as CFO to pursue other opportunities. Song has more than 18 years of experience in financial reporting, consolidation, taxation, compliance, and audit. He joined Keppel REIT Management in 2015 and has been the financial controller of the manager since 2020, where his core responsibilities included group reporting and taxation, financial accounting, compliance, annual budgeting, and quarterly forecasting.
