US real estate manager Makarora Management and Ares Management’s alternative credit business have teamed up to acquire Plymouth Industrial REIT in a $2.1bn take-private deal.
Makarora and Ares Alternative Credit have agreed to acquire the NYSE-listed industrial real estate investment trust in an all-cash transaction. The deal, which includes the assumption of certain outstanding debt, values the purchase price at a premium of approximately 50% over Plymouth Industrial’s last closing price.
Plymouth Industrial is focused on the acquisition, ownership and management of single and multi-tenant industrial properties in the US.
Chad Pike, founder and CIO of Makarora, said: “Plymouth’s portfolio of cost-competitive industrial assets in the Midwest and East Coast is strategically located within a day’s drive of 70% of the US population.
“These properties are well positioned to capitalise on strong industrial demand from these major population centres. Makarora is committed to providing flexible capital solutions to US real estate businesses, and we are excited to partner with the Plymouth team.”
Joel Holsinger, co-head of alternative credit at Ares, said: “We are pleased to partner with Makarora to be both a flexible and scaled partner in an investment secured by a diverse portfolio of industrial properties, which is underscored by attractive market fundamentals and demonstrated asset performance.”
Jeff Witherell, CEO and co-founder of Plymouth Industrial REIT, said: “This all-cash transaction will deliver significant, immediate and certain value to Plymouth shareholders.”
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