NEWTON, Mass.--(BUSINESS WIRE)--The RMR Group Inc. (Nasdaq: RMR) today announced the closing of a $680 million private capital investment vehicle with a large, top tier global sovereign wealth fund to invest in industrial and logistics properties throughout the U.S. RMR will manage the vehicle on behalf of its investors, which includes this new sovereign wealth fund investor (approximately 39%), an existing institutional investor in this vehicle (approximately 39%) and Industrial Logistics Properties Trust, or ILPT (approximately 22%). ILPT is an existing client company of RMR and sold the initial properties into the vehicle. RMR has entered into an asset management agreement and a property management agreement with this investment vehicle. The initial fees RMR expects to receive from this vehicle are approximately equal to fees it earned when the properties were owned by ILPT.
The $680 million investment vehicle currently owns 12 industrial properties with an aggregate 9.2 million square feet in nine states. As of September 30, 2020, these properties were 100% leased for a weighted average remaining lease term (by annualized rental income) of 6.7 years. RMR expects to substantially grow this vehicle with additional industrial and logistics properties in the future.
Adam Portnoy, President and Chief Executive Officer of RMR, made the following statement regarding today’s announcement:
“We are pleased to announce the launch of this inaugural RMR managed private capital investment vehicle. We believe that well located and well leased industrial and logistics properties in the U.S. are positioned to produce exceptional returns for investors in the future. We look forward to growing this vehicle through the acquisition of industrial and logistic properties in the future. We also hope that this private capital investment vehicle marks the beginning of a new line of business for RMR of managing large amounts of private capital on behalf of institutional clients for investment in core real estate assets.”
About The RMR Group Inc.
The RMR Group Inc. is a holding company and substantially all of its business is conducted by its majority owned subsidiary, The RMR Group LLC. The RMR Group LLC is an alternative asset management company that primarily provides management services to publicly traded REITs and real estate operating companies. As of September 30, 2020, The RMR Group LLC had $32.1 billion of total assets under management, including over 2,100 properties, and employed over 600 real estate professionals in more than 30 offices throughout the United States; and the companies managed by The RMR Group LLC collectively had nearly 42,500 employees. RMR is responsible for providing all aspects of management services and strategy for more than 1,300 properties with over 93 million square feet of commercial office, industrial, medical office, life science and retail space. The RMR Group Inc. is headquartered in Newton, Massachusetts.
