DRA buys US industrial portfolio for $382.4m

The New York-based investment firm has acquired 52 industrial properties in Florida, Georgia, Tennessee, Texas and Virginia on behalf of its $1 billion value-added DRA Growth and Income Fund VII.

DRA Advisors has acquired a portfolio of 52 US industrial properties for $382.4 million. The New York-based real estate investment firm purchased the properties on behalf of its latest commingled fund, DRA Growth and Income Fund VII.

According to a statement issued by the seller, Houston-based Weingarten Realty Investors, the portfolio is comprised of 52 industrial properties, aggregating approximately 9.6 million square feet located in Florida, Georgia, Tennessee, Texas and Virginia. The portfolio is predominately unencumbered, with DRA assuming one secured loan of $4.9 million. DRA bought the portfolio on behalf of its latest value-added vehicle, which closed on $1 billion in equity commitments at the end of last year.

David Luski, president and chief executive officer of DRA Advisors, said: “We are pleased to acquire this sizable industrial portfolio featuring solid income returns and value-added upside. This transaction is exemplary of our strategy of collaborating with public REITs who wish to strategically divest assets via outright sale or joint venture.”

Weingarten will use the proceeds from this transaction to pay down amounts outstanding under its revolving credit facility and repay a $200 million unsecured term loan. “The completion of this portfolio sale is a significant step in our previously outlined capital recycling initiative and effectively positions Weingarten as a pure-play retail REIT,” said Drew Alexander, president and CEO of Weingarten Realty Investors. “We will continue repositioning the retail portfolio into core markets with high barriers to entry, strong growth potential and strong demographics.”