In one fell swoop, Toronto-based WPT Industrial REIT plans to increase its portfolio by almost 15 per cent with the purchase of 13 industrial buildings in major U.S. markets for US$226 million.
WPT (WIR-U-T) announced the pending transaction Tuesday morning, saying in a release it has waived diligence conditions. In addition to the 13 buildings which total 2.2 million square feet of leasable space, the portfolio includes three parcels of land and is located in multiple American markets.
In conjunction with the transaction, WPT has also amended and extended its financing arrangements, increasing availability from US$300 million to US$450 million and adding an additional US$300-million accordion feature.
“We are very pleased to source a high-quality portfolio acquisition that advances the REIT’s strategic priorities to add scale and diversification with a focus on markets and properties that have the greatest potential to drive long-term growth,” said WPT CEO Scott Frederiksen in the release.
“With the new amendment to our credit facility, we will have increased capacity and flexibility to continue our pursuit of strategic acquisition and development opportunities for the REIT.”
Expands to Los Angeles, Miami
The acquisition adds properties to WPT’s current holdings in Chicago, Milwaukee and Minneapolis and launches three new markets for the REIT, including the “high-barrier coastal markets” of Los Angeles and Miami.
“The acquisition portfolio also features well-located, highly functional distribution properties with a balanced blend of eight single-tenant and five multi-tenant buildings, which add scale and diversification to the REIT’s portfolio and tenant base,” WPT says in the release.
The purchase will be funded with cash on hand and proceeds from the REITs senior unsecured credit facility.
Subject to closing conditions, the transaction is scheduled to close within the next 30 days.
The increased credit facilities consist of a US$70-million increase to the unsecured revolving credit facility and a new US$80 million unsecured delayed draw term loan.
The credit facility, which previously matured in June 2022, will now mature in March 2023, with the option for two six-month extensions. The delayed draw term loan will have a draw period of one year and mature in March 2024.
About WPT Industrial REIT
WPT Industrial LP (the REIT’s operating subsidiary) indirectly owns a portfolio of approximately 18.9 million square feet of gross leasable area. This includes 56 industrial properties and one office property in U.S. 15 states.
The REIT values its portfolio at US$1.1 billion on its website, and reports an occupancy of 99.3 per cent for all properties.
The REIT’s objective is to acquire, develop, manage and own industrial properties located in the United States, with a particular focus on warehouse and distribution industrial real estate. WPT pays monthly distributions of $0.0633 per share, or approximately $0.76 per share annually, in U.S. funds.