WPT Industrial REIT’s $730 Million Acquisition of Distribution and Logistics Portfolio

Vinson & Elkins advised WPT Industrial REIT in its acquisition of a portfolio of 26 U.S. distribution and logistics properties. Simpson Thacher represented Pure Industrial Real Estate (“PIRET”) as seller in the transaction.

WPT Industrial Real Estate Investment Trust announced the closing of the previously announced acquisition of a portfolio of 26 U.S. distribution and logistics properties totaling approximately nine million square feet of gross leasable area (“GLA”) and one 85-acre land parcel for a purchase price of US$730 million (collectively, the “Acquisition”). The purchase price was partially satisfied from the proceeds of an offering of 18,850,900 subscription receipts of the REIT (the “Subscription Receipts”), for total gross proceeds of approximately US$271 million.

The REIT’s portfolio now comprises total GLA of approximately 32 million square feet consisting of 100 properties located throughout key U.S. distribution and logistics markets. The REIT’s portfolio also benefits from a strong and diverse tenant base, with an average occupancy of 97.7% and weighted average lease term to maturity of 4.7 years.

The Offering closed on February 27, 2020 and the Acquisition closed on March 26, 2020.

WPT Industrial Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario.

PIRET is a Blackstone and Ivanhoe Cambridge portfolio company headquartered in Toronto, Canada. PIRET is focused on acquiring, leasing, operating and managing a portfolio of high-quality, well-located industrial assets with a portfolio of over 28 million square feet throughout Canada and the U.S.

The V&E team included Greg Cope (Picture), Maram Mahajna, Chris Mangin, Jason McIntos, Jim Meyer, Paige Anderson and Miron Klimkowski.

Simpson Thacher represented Pure Industrial Real Estate (“PIRET”) with a team included Davis Coen, Sas Mehrara and Kathryn Christoforatos (Real Estate); Nancy Mehlman and Sophie Staples (Tax); and Parker Kelsey and Audra Cohen (Private Funds).

Involved fees earner: Kathryn Christoforatos – Simpson Thacher & Bartlett; Davis Coen – Simpson Thacher & Bartlett; Audra Cohen – Simpson Thacher & Bartlett; Parker Kelsey – Simpson Thacher & Bartlett; Nancy Mehlman – Simpson Thacher & Bartlett; Sasan Mehrara – Simpson Thacher & Bartlett; Sophie Staples – Simpson Thacher & Bartlett; Paige Anderson – Vinson & Elkins LLP; Gregory Cope – Vinson & Elkins LLP; Miron Klimkowski – Vinson & Elkins LLP; Maram Mahajna – Vinson & Elkins LLP; Christopher Mangin Jr. – Vinson & Elkins LLP; Jason McIntosh – Vinson & Elkins LLP; James Meyer – Vinson & Elkins LLP;

Law Firms: Simpson Thacher & Bartlett; Vinson & Elkins LLP;

Clients: Pure Industrial Real Estate Trust; WPT Industrial Real Estate Investment Trust;

Author: Ambrogio Visconti