WPT Industrial Real Estate Investment Trust has waived diligence conditions and plans to acquire a portfolio of 13 industrial buildings and three land parcels located in multiple markets in the United States totaling approximately 2.2 million square feet of gross leasable area.
The Acquisition Portfolio increases the REIT’s scale in Chicago, Milwaukee and Minneapolis and adds properties in 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.
Total purchase price for the Acquisition Portfolio is approximately US$226 million (exclusive of transaction and closing costs), which is expected to be funded with cash on hand and proceeds from the REITs senior unsecured credit facility.
In anticipation of closing on the Acquisition Portfolio, the REIT has received lender commitments to amend and extend the Credit Facility, increasing availability from $300 million to $450 million and maintaining an additional $300 million accordion feature. The increased commitments were comprised 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 an initial draw period of one year from the date of the amendment and mature in March 2024.
“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. 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,” said Scott Frederiksen, Chief Executive Officer.