Madison International, Plymouth Industrial REIT Form $150M Equity JV

Real Estate

Plymouth Industrial REIT and Madison International have formed a $150 million equity joint venture to acquire value-add and opportunistic industrial properties. Plymouth will own a 20% interest in the joint venture, and Madison will own an 80% interest.

The JV is an expansion of the two companies’ existing relationship, which began in 2018 when Madison made a convertible preferred investment in the REIT and participated in subsequent common equity follow on offerings.

Plymouth will be responsible for day-to-day oversight of the joint venture and will be entitled to an annual asset management fee equal to 1% of the total equity contributed to the joint venture. Plymouth also has options to purchase properties out of the joint venture over time.

For its first investment, the joint venture has agreed to acquire a 28-property portfolio of Class B industrial properties totaling 2.3 million square feet in metropolitan Memphis. The acquisition, which is subject to customary closing conditions, is expected to close by year end 2020. The acquisition will be funded with secured financing of 60% to 65% loan-to-value and with equity contributions from Plymouth and Madison based on their pro rata ownership of the joint venture.

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