2.15.24 | This week we recognized 5 capital-related transactions with a disclosed value of $6 Billion USD.
Additionally, we recognized 2 leadership changes within the industry.
Summary of Transaction Headlines
IREI | “DRA Advisors Holds $2.8 Billion Final Close for Latest Flagship Real Estate Fund”
DRA Advisors, the New York-based real estate investment adviser, has announced a final close for DRA Growth & Income Fund XI (DRA XI), its latest flagship offering, after raising $2.28 Billion of committed capital. DRA XI is seeking to invest in value-add real estate opportunities in retail, office, industrial, multifamily, and life sciences sectors in the continental United States. To date, DRA XI has deployed roughly 15 percent of its capital toward 10 separate investments in industrial, retail, and multifamily assets.
Bloomberg | “Tritax Offers to Buy UK REIT in $1.2 Billion All-Share Deal”
Tritax Big Box REIT Plc has offered to buy out UK Commercial Property REIT Ltd. in an all-share deal valued at £924 Million ($1.2 Billion USD). The offer represents a premium of about 10.8% to UKCM’s February 9 closing price and 23% over its six-month volume weighted average as of the same date. The acquisition, if completed, would create the UK’s fourth-largest public property company with a combined portfolio valued at more than £6 Billion ($7.54 Billion USD). UKCM shareholders would own roughly 23.3% of the combined group, according to the filing.
PR Newswire | “Welltower Announces Planned Acquisition of $1.0 Billion Affinity Active Adult Portfolio and Formation of Long-Term Strategic Partnership”
Welltower Inc. (NYSE: WELL) (“Welltower” or the “Company”) announced that it plans to form a long-term strategic partnership with Affinity Living Communities (“Affinity”), a vertically integrated developer and operator of age-restricted and age-targeted wellness housing. Welltower is under contract to acquire a portfolio of 25 purpose-built active adult communities for $969 Million through a privately negotiated, off-market transaction and expects to enter into a long-term programmatic development agreement with Affinity.
BNN Bloomberg | “Ex-Goldman Partner’s Pretium Nears $1 Billion for Bets on Single-Family Rentals”
Pretium, led by former Goldman Sachs Group Inc. partner Don Mullen, has raised nearly $1 Billion for a new fund to acquire rental homes from builders. The firm has been gathering capital and expects to exceed its target when the fund closes later this year, according to people familiar with the matter who asked not to be identified, citing private information. Pretium is already using the new fund to buy homes in its existing markets and can buy properties that aren’t immediately cash-flow positive said one of the people.
Bisnow | “Bain Capital and Cherry Tree Capital Partners Forming JV to Build for Rent Townhomes”
Bain Capital Real Estate and Cherry Tree Capital Partners formed a joint venture to build new rental townhomes throughout Southern California. BCT Development, as the JV is called, launched “with the objective of deploying several hundred Million dollars of gross capital over the next several years.” BCT will at first focus on acquiring, entitling, and developing land in the region’s highest-growth suburban markets, especially targeting areas with good schools, growing neighborhoods, and desirable entertainment options.
IREI | “Acadia Realty Trust Appoints New CIO”
Acadia Realty Trust has promoted Reggie Livingston to Executive Vice President, and CIO. Livingston will continue to drive the company’s external growth by developing investment strategies and leading the sourcing, underwriting, and execution of new investments. Since joining Acadia in 2011, Livingston has been promoted to Senior Vice President, Co-Head of Acquisitions, in 2020 and to Senior Vice President, CIO, in 2023. In addition, Samantha Stapleton has been promoted to Vice President, Asset Management. The firm also promoted Christina Lamendola to Vice President of strategic Lease Management.
PERE | “BlackRock Names New Global Co-Heads of Real Estate”
The executives will be the New York-based asset manager’s first dedicated heads of real estate since Marcus Sperber departed in 2019. Paul Tebbit and Thomas Mueller-Borja have been jointly promoted to the firm’s top real estate post, marking the first time BlackRock’s Global Real Estate Head position has been shared by two people. Paul Tebbit has been promoted at BlackRock for the third time in two years. Tebbit and Mueller-Borja will succeed Anne Valentine Andrews in overseeing the real estate platform. Based in London, they will report to Brent Patry, who himself was promoted to Global Head of Equity Private Markets last month, replacing Edwin Conway.
