REAL ESTATE INVESTMENT
STORE Capital, GIC and Oak Street | September 17, 2022
STORE Capital Corporation, an internally managed net-lease real estate investment trust (REIT) that invests in Single Tenant Operational Real Estate, and GIC, a global institutional investor in partnership with Oak Street, a Division of Blue Owl, one of the largest net lease investors, today announced that they have entered into a definitive agreement under which GIC and funds managed by Oak Street will acquire STORE Capital in an all-cash transaction valued at approximately $14 billion.
Under the terms of the definitive merger agreement, STORE Capital stockholders will receive $32.25 per share in cash, which represents a premium of 20.4% to STORE Capital’s closing stock price as of September 14, 2022 and a premium of 17.8% to the 90-day volume weighted average stock price through that date.
“This all-cash transaction delivers a meaningful premium that provides immediate and certain value for our stockholders in a challenging market environment, while positioning the Company, its customers and its partners for continued success, I would like to extend my thanks to the entire Board and management team for their hard work during this process, and for their unwavering commitment to acting in the best interests of our stockholders.”
-Tawn Kelly, Chairman of the Board of Directors of STORE Capital
We are pleased to partner with GIC and Oak Street to deliver what we believe is an excellent outcome for our stockholders, This opportunity is an endorsement, by two leading real estate investors with significant access to capital, of the strength of our platform, our experienced leadership team and our disciplined investment approach. We look forward to continuing to grow and support our customers,said Mary Fedewa, President and Chief Executive Officer of STORE Capital.
As one of the largest dedicated U.S. net lease real estate companies in a nearly US$4 trillion-dollar market, STORE Capital is a strong addition to GIC’s diverse portfolio of U.S. real estate investments, We are confident the Company will continue its trajectory of accretive growth by meeting the demand for long-term financing solutions from middle market U.S. companies. We look forward to working closely with STORE Capital and our partners at Oak Street to grow this platform over the long term,said Adam Gallistel, Head of Americas Real Estate, GIC.
As a global long-term investor, GIC seeks to invest in best-in-class businesses with strong long-term growth potential, We are thrilled to lead this investment in STORE Capital given its impressive cash flow profile, long-weighted average lease term and highly diversified portfolio with strong rent coverage,said Lee Kok Sun, Chief Investment Officer of Real Estate, GIC.
We are extremely excited to invest together with a like-minded and thoughtful partner in GIC, We believe the STORE Capital platform complements Oak Street’s exposure to the triple-net industry and our focus on sale-leasebacks. The potential scale of this combination and partnership can deliver one of the most diversified, unique and long dated net lease platforms across the globe,said Marc Zahr, President of Oak Street.
Timing and Approvals
The transaction, which was unanimously approved by the STORE Capital Board of Directors, is expected to close in the first quarter of 2023, subject to approval by STORE Capital’s stockholders and the satisfaction of certain other customary closing conditions. The closing of the transaction is not subject to any financing conditions.
The definitive merger agreement includes a 30-day “go-shop” period that will expire on October 15, 2022, which permits STORE Capital and its representatives to actively solicit and consider alternative acquisition proposals. There can be no assurance that this process will result in a superior proposal, and the Company does not intend to disclose developments with respect to the go-shop process unless and until it determines such disclosure is appropriate or is otherwise required.
Under the terms of the definitive merger agreement, STORE Capital will declare and pay its third quarter cash dividend in the ordinary course. Thereafter, the Company has agreed to suspend payment of any further regular quarterly dividends through the closing.
Subject to and upon completion of the transaction, STORE Capital’s common stock will no longer be listed on the New York Stock Exchange.
Evercore and Goldman Sachs & Co. LLC are acting as financial advisors to STORE Capital, and DLA Piper LLP (US) is acting as its legal counsel. Eastdil Secured Advisors LLC and Citigroup Global Markets Inc. are acting as financial advisors to GIC and Oak Street. Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal counsel to GIC and Kirkland & Ellis LLP is acting as legal counsel to Oak Street.
About STORE Capital
STORE Capital is an internally managed net-lease REIT that is a leader in the acquisition, investment and management of Single Tenant Operational Real Estate, which is its target market and the inspiration for its name. STORE Capital is one of the largest and fastest growing net-lease REITs and owns a large, well-diversified portfolio that consists of investments in more than 3,000 property locations across the United States, substantially all of which are profit centers.
GIC is a leading global investment firm established in 1981 to secure Singapore's financial future. As the manager of Singapore's foreign reserves, GIC takes a long-term, disciplined approach to investing, and is uniquely positioned across a wide range of asset classes and active strategies globally. These include equities, fixed income, real estate, private equity, venture capital, and infrastructure. The firm's long-term approach, multi-asset capabilities, and global connectivity enable them to be an investor of choice. GIC seeks to add meaningful value to its investments. Headquartered in Singapore, GIC has a global talent force of over 1,900 people in 11 key financial cities and has investments in over 40 countries.
About Oak Street, a Division of Blue Owl
Oak Street, a division of Blue Owl, is a real estate investment firm focused on acquiring properties net-leased to investment grade and creditworthy tenants. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. Oak Street has $16.6 billion in assets under management as of June 30, 2022. Blue Owl is a global alternative asset manager with $119 billion in assets under management as of June 30, 2022. Anchored by a strong permanent capital base, the firm deploys private capital across Direct Lending, GP Solutions and Real Estate strategies on behalf of Institutional and Private Wealth clients. Blue Owl's flexible, consultative approach helps position the firm as a partner of choice for businesses seeking capital solutions to support their sustained growth.
REAL ESTATE TECHNOLOGY
Curbio | July 07, 2022
Curbio, Inc., the leading fix now, pay-at-closing home improvement solution for real estate agents and their clients, today announced that it has expanded its services into the Jersey Shore area of New Jersey. This expansion includes Tom's River, Atlantic City, Cape May, and the surrounding areas.
Curbio is a groundbreaking PropTech solution that has set out to transform the way that real estate agents, brokerages, and their clients get listings ready for market. Curbio's expertise in pre-listing home improvements, combined with its proprietary technology, enable the company to complete pre-listing updates of any size efficiently and reliably, so that realtors and their clients can sell their home for more without the hassle of traditional home improvement.
Curbio takes care of all sourcing, project management and communication, and acts as the licensed, insured general contractor on all projects. The company does not have any project minimums or maximums, making their pay-at-closing solution ideal for listings of any size. From basic listing preparations to whole home makeovers, Curbio helps any listing become market-ready quickly and reliably.
"We couldn't be more excited to be bringing Curbio to the Jersey Shore. Buyers in the Jersey Shore want move-in-ready homes, and Curbio is here to help with that. We are the only completely turnkey pre-listing home improvement solution that allows real estate agents and their clients to update their listings and sell for more, without taking on the stress of traditional home improvement. Plus, homeowners don't pay any cash until the home sells, with zero interest, fees, or premiums," said Olivia Mariani, VP of Marketing at Curbio.
This is the seventh new-market expansion for Curbio this year, following their launches in Nashville, Tenn., Richmond, Va., Wilmington, Del., Charlotte, N.C., Virginia Beach, Va., and Raleigh, N.C. The company now serves 31 markets across the United States.
Curbio was founded in 2017 to transform the multi-billion-dollar home improvement industry and has quickly become the nation's leading pay-at-closing home improvement solution. The company partners exclusively with real estate agents and their clients to get any home ready for the market, allowing it to sell faster and for top dollar. Using technology to power their service, Curbio completes pre-listing home improvement projects of any size quickly and without hassle, from start to finish, with zero payment due until the home sells. Curbio is trusted by thousands of realtors and brokerages nationwide, and has been continuously recognized for its exemplary solution, receiving nods in HousingWire, Qualified Remodeler and Comparably, to name a few.
Walker & Dunlop | June 30, 2022
Walker & Dunlop, Inc. announced that it facilitated the sale of East Bank at Richwood Village, a 200-unit luxury apartment complex located in Richwood, Texas. The property represented a rare opportunity to invest in a high-quality asset within the greater Lake Jackson submarket, a fast-growing area with limited multifamily stock.
Ryan Epstein and Jennifer Ray led the Walker & Dunlop team in facilitating the disposition from the seller, Pensam Capital, LLC to the buyer's representative, BR Premier Properties. The team assisted the client throughout the entire transaction, ensuring a favorable sale price.
Demographic and employment trends within the Lake Jackson area have been extremely positive over the past several months. Occupancy and rent growth in the immediate area have both been increasing significantly, making East Bank an excellent investment opportunity."
Ryan Epstein,Managing Director
With premium garden-style multifamily residences, East Bank at Richwood Village caters to the Alvin, Angleton, and Lake Jackson submarkets. The community's amenities include a cybercafé, fitness center, clubhouse, outdoor firepit, and dog park. In addition, Dow Chemical, the largest employer in the Lake Jackson area with nearly 4,000 employees, is located less than five miles west of East Bank at Richwood Village. The broader Brazoria County area also offers employment in many different industries, with oil, gas, and chemical companies at the top of the list of employers.
Walker & Dunlop is a leader in multifamily property sales, having completed $19.3 billion in property sales volume in 2021 alone, up 214% from 2020. Visit our website for information about multifamily properties available for sale via Walker & Dunlop's property sales platform.
About Walker & Dunlop
Walker & Dunlop is one of the largest providers of capital to the commercial real estate industry, enabling real estate owners and operators to bring their visions of communities — where Americans live, work, shop and play — to life. The power of our people, premier brand, and industry-leading technology makes us more insightful and valuable to our clients, providing an unmatched experience every step of the way. With more than 1,400 employees across every major U.S. market, Walker & Dunlop has consistently been named one of Fortune's Great Places to Work® and is committed to making the commercial real estate industry more inclusive and diverse while creating meaningful social, environmental, and economic change in our communities.
REAL ESTATE INVESTMENT
Nitya Capital | September 26, 2022
Nitya Capital, a U.S. real estate investment firm, announced that it is expanding to the United Arab Emirates (UAE) as part of its continuing global growth strategy. Nitya plans to open an office in January 2023 to grow its investor base and provide opportunities to directly invest in U.S. real estate amid shifting global economies and stock market fluctuations.
Following the recent opening of Nitya’s India office in 2020, the expansion to the UAE underscores the increase in global demand for reliable alternative investment opportunities found in U.S. real estate, particularly multifamily. Nitya’s UAE branch plans to reach a newer, locally sourced investor base, specifically family offices, institutions, and high-net-worth investors.
“Opening our first branch in the Middle East is an exciting stepping stone in Nitya’s growth, The Middle East is a very important hub for Nitya given our recent successful capital raises in the region, and we can’t wait to offer the best in real estate services to Middle Eastern institutions and high-net-worth investors. I’m very grateful for the love and hospitality I’ve experienced during my many visits to the UAE and it’s an honor to be working with the investment community.”
-Swapnil Agarwal, CEO of Nitya Capital
Nitya leadership recently executed successful overseas investment deals with one of UAE’s largest institutional groups, as well as attributed meaningful investments with Middle East families in the past. With this expansion, the company will continue the momentum and meet increased demand from local investors who want to explore a new wave of recession-resilient real estate ventures through a direct presence within the region.
Nitya’s Middle East Partner and Managing Director for the new UAE location, Rasheed Chahal, will oversee all internal and regional developments across the branch, work with investors on all levels (high-net-worth individuals, family offices, institutions) for U.S. real estate deals as well as help to grow the UAE office. Chahal has more than 15 years of experience in various roles in real estate development, investment management, and capital markets across North American and Middle Eastern regions.
Multifamily real estate in the United States remains to be a lucrative investment as it continues to see increase in demand for housing given continued population growth and shortage of supply, despite global economic shifts. We want to bring these investment opportunities directly to the UAE investment community, Our expansion will provide local investors with in-area, on-the-ground representation and can help them take advantage of exceptional real estate opportunities without taking on major risk. With all the uncertainty and rising inflation taking place across national economies, real estate continues to be a powerful hedge and very attractive place to put your money,stated Chahal.
Nitya Capital has experienced historic growth since 2020, has partnered with large institutions across North America, explored several successful new student housing portfolios, opened an India office, and increased its total assets under management. The company currently oversees assets in excess of $3b. Overall, it has successfully exited over $2.5b in assets with 25%+ in total generated net returns for its investors since the company’s launch in 2013.
Its latest extension into the UAE region marks a substantial diversification in its growth across national waters, allowing for local investors to seize profitable real estate opportunities with safe and stable returns.
About Nitya Capital
Nitya Capital is a privately-owned national real estate investment firm headquartered in Houston, Texas. As active investor-operators, Nitya Capital takes a disciplined approach across all avenues pre- and post-acquisition. Our team of dedicated professionals works thoroughly to monitor key performance indicators and optimize asset performance, engaging in in-depth market research and data analysis. We additionally provide a thorough due diligence process and a holistic, hands-on asset management model, maximizing our attention to detail on all ends of the spectrum.