WPT Industrial REIT Completes US$32.3 Million Offering and Acquisitions of Two Distribution Facilities
|Areas||Commercial Real Estate, REITs and Income Securities, Tax|
Goodmans represented WPT Industrial Real Estate Investment Trust (the “REIT”) in connection with the completion of a public offering of 3,478,200 trust units, inclusive of 355,500 trust units issued pursuant to the exercise in full of the over-allotment option, on a bought deal basis, at a price of US$9.30 per unit for gross proceeds of approximately US$32.3 million. The syndicate of underwriters for the offering was co-led by RBC Capital Markets and CIBC and included BMO Nesbitt Burns Inc., National Bank Financial Inc., Desjardins Securities Inc., TD Securities Inc., Canaccord Genuity Corp., GMP Securities L.P. and Scotia Capital Inc.
As part of the offering, Welsh Property Trust, LLC (“Welsh”), the REIT’s external asset and property manager, purchased 752,700 trust units at the offering price, pursuant to the exercise of its pre-emptive right under the agreement of limited partnership governing WPT Industrial, LP, the REIT’s operating subsidiary.
The REIT used approximately US$13.3 million of the net proceeds of the offering towards the purchase of a 300,000 square foot distribution facility located in Hebron, Kentucky that closed on April 4, 2014. The REIT used the approximately US$17.5 million balance of the net proceeds to partially fund its acquisition of a 1.5 million square foot distribution facility located in Atlanta, Georgia from a third party for a purchase price of approximately US$51.5 million that closed on April 29, 2014.
The REIT owns and operates an institutional-quality portfolio of primarily industrial properties located in the United States, with a particular focus on warehouse and distribution industrial real estate. With the completion of the Kentucky and Georgia property acquisitions, the REIT’s portfolio now consists of 38 industrial properties and two office properties totalling approximately 11.7 million square feet of gross leasable area.