Plymouth Industrial REIT, Inc. has entered a strategic partnership with Sixth Street Partners, securing around $500 million in capital to boost its acquisition efforts. The agreement involves Sixth Street providing $250 million through a 65% joint venture ownership of Plymouth’s Chicago portfolio and a non-convertible preferred equity investment. Plymouth will contribute its Chicago properties valued at $356 million, retaining 35% ownership of the approximately 5.9-million-square-foot portfolio. This transaction, expected to close within 45 days, aims to maintain leverage neutrality while reducing overall leverage in line with Plymouth’s targets for 2024. The partnership is designed to fuel Plymouth’s growth while mitigating risks through off-balance sheet structures. Sixth Street’s investment aims to capitalize on low vacancy and strong rent growth in Plymouth’s industrial properties, potentially driving future growth and new collaboration opportunities.
Real Estate, Private Equity,United States
https://sixthstreet.com/investment_announce/plymouth-industrial-reit-announces-strategic-partnership-with-sixth-street/