NEWTON, Mass.--(BUSINESS WIRE)--Industrial Logistics Properties Trust (Nasdaq: ILPT) today announced that it has closed on a $650 million mortgage loan that matures in February 2029. The loan is secured by a select portfolio of industrial assets located on the island of Oahu in Hawaii, comprising 186 properties (178 land parcels and 8 buildings) containing in aggregate approximately 9.6 million square feet. This loan also applies to approximately 57% of ILPT’s total owned square footage in Hawaii. As of December 31, 2018, the current weighted average remaining lease term for these properties was more than 14 years and the occupancy of the properties was nearly 100%.
The 10-year loan is non-amortizing and carries a fixed interest rate of 4.31% per annum. ILPT expects to use the proceeds of this loan to repay all outstanding borrowings under ILPT’s $750 million unsecured revolving credit facility and for general business purposes, including potential future acquisitions.
“We are pleased to term out our floating rate debt with attractive long term fixed rate debt and to demonstrate the tremendous value of these unique Hawaiian assets,” said John Murray, ILPT’s President and Chief Executive Officer. “While the underlying assets had a net book value of less than $500 million at year end 2018, this loan provides us with $650 million of capital to fund value-enhancing external growth opportunities. We believe that with a loan-to-value (LTV) ratio of less than 50%, this transaction further demonstrates the value of ILPT’s high quality properties, which are leased to a diversified tenant base and produce stable cash flows from long term leases.”
The loan was provided by Morgan Stanley, Citi, UBS and J.P. Morgan. Eastdil Secured acted as ILPT’s advisor and Sullivan & Worcester LLP provided legal counsel to ILPT in this transaction.
Industrial Logistics Properties Trust is a real estate investment trust, or REIT, that owns and leases industrial and logistics properties throughout the United States. ILPT is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, MA.
