The Real Deal New York

Black Creek considers selling warehouse REIT worth $3.5B

The portfolio has a $181M projected net operating income for 2020.
February 22, 2019 08:31AM

Black Creek CEO Raj Dhanda and several properties from Industrial Property Trust (Credit: Black Creek and Industrial Property Trust)

It could be good news for the tight industrial property market.

Real estate investment firm Black Creek Group is considering selling an industrial property REIT that could fetch up to $3.5 billion, including debt.

Industrial Property Trust is an untraded REIT with 240 properties, with a total of around 37.6 million square feet, according to Bloomberg. The properties – 96 percent of which are leased – are a mix of bulk warehouse use and “last mile” storage, and tenants include Amazon and Fed Ex.

The REIT’s projected net operating income for 2020 is roughly $181 million, according to documents reviewed by Bloomberg.

Black Creek is looking to either sell or recapitalize the REIT, an unnamed source told Bloomberg. The firm attempted a similar sale last year, but canceled it after other large warehouse portfolios hit the market.

In July, 2018, TRD reported that Black Creek were partnering with Chicago-based Dayton Street to develop two large industrial buildings near Chicago’s O’Hare airport. [Bloomberg] – Decca Muldowney