Singapore’s GIC and Oak Street are acquiring US net-lease real estate investment trust Store Capital in a $14bn (€13.6bn) take-private deal.
GIC and the Blue Owl subsidiary are offering Store Capital stockholders $32.25 for each share held, an offer which represents a premium of 20.4% to the stock’s last closing price.
The transaction, which is expected to close in the first quarter of 2023, will lead to Store Capital’s common stock being delisted from the New York Stock Exchange, the companies said.
Store Capital, which invests in single-tenant operational real estate, owns more than 3,000 property locations across the US.
Adam Gallistel, the head of Americas Real Estate at GIC, said: “As one of the largest dedicated US net lease real estate companies in a nearly four trillion-dollar market, Store Capital is a strong addition to GIC’s diverse portfolio of US 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 US companies.”
Lee Kok Sun, CIO of Real Estate at GIC, said: “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.”
Marc Zahr, president of Oak Street, said: “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.”
Tawn Kelly, chairman of the board of directors of Store Capital, said: “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.”
Mary Fedewa, president and CEO of Store Capital, said: “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.”
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