VEREIT® Announces Closing of $407.0 Million Institutional Partnership with Korea Investment & Securities Advised by Ocean West
PHOENIX, May 31, 2019 /PRNewswire/ -- 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."
VEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S. The Company has total real estate investments of $15.6 billion including approximately 4,000 properties and 94.7 million square feet. VEREIT's business model provides equity capital to creditworthy corporations in return for long-term leases on their properties. VEREIT uses, and intends to continue to use, its Investor Relations website, which can be found at www.VEREIT.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Additional information about VEREIT can be found through social media platforms such as Twitter and LinkedIn.
About Ocean West
Since its formation in 2009, Ocean West has acquired and operated office and multifamily residential investments valued over $2.0 billion and completed over $4.9 billion of commercial real estate transactions. With over 100 years of combined experience and $50.0 billion of real estate transactions completed among its principals, Ocean West is a full-service real estate investment, operations, and management platform dedicated to identifying and executing opportunities that create long-term value for its partners and investors. For more information, visit www.oceanwestcp.com.
Korea Investment Holdings Co., Ltd., the parent company of KIS, engages in the provision of comprehensive financial services. Its activities include securities, brokerage, asset management, principal investment, venture capital, investment banking and finance solutions. The company was founded on January 11, 2003 and is headquartered in Seoul, South Korea. To learn more, go to www.koreaholdings.com.
About Eastdil Secured
Eastdil Secured is the foremost provider of financial advisory services to real estate owners. Eastdil Secured combines superior capital markets expertise with a deep understanding of real estate fundamentals to execute a wide range of real estate transactions. Find more information online at www.eastdilsecured.com.
Information set forth herein contains "forward-looking statements" (within the meaning of the federal securities laws, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended), which reflect VEREIT's expectations and projections regarding future events and plans, VEREIT's future financial condition, results of operations and business including the expansion of VEREIT's presence and the growth of the institutional partnership. The forward-looking statements involve a number of assumptions, risks, uncertainties and other factors that could cause actual results to differ materially from those contained in the forward-looking statements. Generally, the words "expects," "anticipates," "assumes," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," "may," "will," "should," "could," "continues," variations of such words and similar expressions identify forward-looking statements. These forward-looking statements are based on information currently available to us and are subject to a number of known and unknown risks, uncertainties and other factors, most of which are difficult to predict and many of which are beyond VEREIT's control. If a change occurs, VEREIT's business, financial condition, liquidity and results of operations may vary materially from those expressed in or implied by the forward-looking statements.
The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: VEREIT's plans, market and other expectations, objectives, intentions and other statements that are not historical facts; the developments disclosed herein; VEREIT's ability to meet its 2019 guidance; VEREIT's ability to renew leases, lease vacant space or re-lease space as leases expire on favorable terms or at all; risks associated with tenant, geographic and industry concentrations with respect to VEREIT's properties; the impact of impairment charges in respect of certain of VEREIT's properties, goodwill and intangible assets and other assets; unexpected costs or liabilities that may arise from potential dispositions, including related to limited partnership, tenant-in-common and Delaware statutory trust real estate programs and VEREIT's management with respect to such programs; competition in the acquisition and disposition of properties and in the leasing of its properties; the inability to acquire, dispose of, or lease properties on advantageous terms; risks associated with bankruptcies or insolvencies of tenants, from tenant defaults generally or from the unpredictability of the business plans and financial condition of VEREIT's tenants; risks associated with pending government investigations and litigations related to VEREIT's previously disclosed audit committee investigation, including the expense of such investigations and litigation and any additional potential payments upon resolution; risks associated with VEREIT's substantial indebtedness, including that such indebtedness may affect VEREIT's ability to pay dividends and the terms and restrictions within the agreements governing VEREIT's indebtedness may restrict its borrowing and operating flexibility; the ability to retain or hire key personnel; and continuation or deterioration of current market conditions. Additional factors that may affect future results are contained in VEREIT's filings with the U.S. Securities and Exchange Commission (the "SEC"), which are available at the SEC's website at www.sec.gov. VEREIT disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of changes in underlying assumptions or factors, new information, future events or otherwise, except as required by law.
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SOURCE VEREIT, Inc.