Granite Real Estate Investment Trust to Buy $246.1 Million in Properties

June 10, 2020 | Real Estate

Granite Real Estate Investment Trust (GRP-UN) announced it will acquire eight income-producing properties in the United States. The deal comprises approximately 4.0 million square feet at a combined purchase price of approximately $246.1 million.

The Acquisitions represent an in-going weighted average yield of approximately 5.5% and are fully leased with a weighted average lease term of 5.1 years to a diverse range of strong tenants.

Granite is a Canadian-based REIT engaged in the acquisition, development, ownership, and management of logistics, warehouse, and industrial properties in North America and Europe. Granite owns over 90 investment properties representing approximately 40.3million square feet of leasable area.

The Granite Real Estate Investment Trust Deal

Granite has agreed to acquire five modern distribution warehouses located in the Midwest markets of Cincinnati, Columbus, and Indianapolis, collectively totaling 2.4 million SF. The properties are 100% leased to six tenants for a weighted average remaining lease term of 4.6 years. These institutional quality assets have a minimum of 32’ clear heights with an average age of 10 years.

The properties are located in established business parks with close proximity to highway and major air/rail systems and benefit from the availability of labor and access to more than 50% of the U.S. population within a one-day drive. Two of the properties are located in Cincinnati’s largest industrial submarket, Tri-County, with close proximity to Cincinnati/Northern Kentucky International Airport.

The Cincinnati/Northern Kentucky International Airport serves as DHL’s North American hub and is home to Amazon’s US$1.5 billion Prime Air Hub.  The two Columbus properties are located in the preferred southeast Rickenbacker submarket, adjacent to Rickenbacker International Airport, one of the world’s only cargo-dedicated airports. The Indianapolis property, situated in the Plainfield submarket, the most sought after in the region, is located within 3 miles from the Indianapolis International Airport and the FedEx Air Hub, the second-largest FedEx hub in the world.

Granite has agreed to acquire three modern distribution warehouses located in the Memphis market totaling 1.6 million SF which are 100% leased to five tenants for a weighted average remaining lease term of 6.2 years. These highly functional assets have 32’ clear heights, cross-dock capabilities, and flexible design characteristics.

The three properties are strategically located near major e-commerce distribution infrastructure, including the Memphis International Airport, the world’s busiest cargo airport, FedEx World Hub, which is currently undergoing a multi-billion expansion, UPS Airport Facility and the BNSF Memphis Intermodal Facility.

Related: NAREIT 2020 Outlook: The Future Looks Favorable for Real Estate


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