Mortgage REIT Sachem Capital Corp. and privately held Industrial Realty Group (IRG) mentioned Monday they’ve entered right into a definitive contribution settlement below which IRG will contribute 98 industrial belongings from its 200-asset portfolio owned by IRG and/or its companions to Sachem. The mixed firm will function as IRG Realty Belief, Inc. (IRGT).
Upon closing, IRGT is predicted to personal 98 industrial properties with gross actual property asset worth of $2.9 billion plus Sachem’s roughly $470 million of complete belongings. IRGT is predicted to have an implied enterprise worth of roughly $3.4 billion, positioning it as a prime‑10 publicly listed industrial REIT based mostly on enterprise worth.
IRGT will give attention to mission‑essential industrial infrastructure supporting manufacturing and distribution customers. The belongings not being contributed will proceed to be owned and operated by IRG’s present non-public enterprise.
“This accretive transaction supplies a transparent step ahead for Sachem shareholders and IRG stakeholders creating a robust industrial platform with larger scale and a method constructed for sustained development,” mentioned John Villano, CEO of Sachem. “Along with turning into one of many largest homeowners of commercial belongings within the nation with sizable mark-to-market alternative, Sachem’s direct and oblique mortgage capabilities will even proceed to supply artistic capital options to actual property builders and traders.”
It’s anticipated that the mixed firm’s management might be comprised of Sachem executives and key additions with in depth industrial actual property expertise.
Scotiabank is serving as unique monetary advisor and King & Spalding LLP is serving as authorized advisor to IRG. Piper Sandler & Co. and Stout Risius Ross, LLC are performing as monetary advisors and Morrison & Foerster LLP is serving as authorized advisor to Sachem.
