First Industrial forms $425 million net lease fund
First Industrial Realty Trust, Inc., the US' largest provider of diversified industrial real estate, has formed a net lease fund with the Kuwait Finance House (KFH), a publicly-traded financial institution with over eight billion dollars in assets and a global investor with real estate holdings in the US, Europe and the Middle East.
The Fund is targeting the acquisition of net lease industrial properties throughout the United States. The total capitalization of the Fund is expected to be up to $425 million. KFH has agreed to contribute up to $100 million in equity and First Industrial has agreed to contribute up to approximately $18 million in equity, representing an 85 percent and 15 percent equity interest, respectively.
First Industrial, through its full-service local management, will manage the properties. "The purpose of this new venture is to enable us to further serve the needs of our customers and expand our full-service capabilities to Corporate America," said Mike Brennan, president and chief executive officer.
"Our broad operating platform and extensive corporate relationships provide access to a high number of industrial properties ideally suited for this venture."
Mike Havala, chief financial officer, added, "We are very pleased to expand our relationship with KFH. Our previous venture with KFH has been highly successful, producing greater than projected returns for the partners. This new venture represents another opportunity for us to earn a high return on invested capital. We look forward to additional success in this new venture."
"Our initial venture with First Industrial has performed exceedingly well," said Mohammed S. Al-Omar, assistant general manager of the Kuwait Finance House. "We are delighted to have the opportunity to increase our investment in industrial properties and to grow our partnership with First Industrial."
First Industrial Realty Trust, Inc., serves Corporate America's industrial real estate needs, including customized supply chain solutions, through its unique I-N-D-L operating platform, which utilizes a pure Industrial focus and National scope to provide Diverse facility types, while offering Local, full-service management and expertise.
Building, buying, selling, leasing and managing industrial property in major markets nationwide, First Industrial develops long-term relationships with corporate real estate directors, tenants and brokers to better serve customers with creative, flexible industrial real estate solutions. — (menareport.com)
© 2003 Mena Report (www.menareport.com)