IStar To Sell A Net Lease Asset Portfolio For $3.07 Bln

(RTTNews) - Real estate investment company, iStar Inc. (STAR), said on Wednesday that it has inked a deal to sell a portfolio of its owned and managed net lease assets to an affiliate of Carlyle's Global Credit platform, for $3.07 billion.

Jay Sugarman, Chief Executive Officer of iStar, said: "…For us, this sale continues the execution of our announced corporate strategy of simplifying our portfolio and focusing on the ground lease business, which we view as the next evolutionary wave in commercial real estate."

The transaction, which includes the sale of 18.3 million square feet of institutional quality office, entertainment, and industrial properties located throughout the US, is expected to be completed in the first quarter of 2022.

The company said it estimates that the sale will positively impact its net income and common equity of approximately $525 million and to adjusted common equity of approximately $250 million.

The company estimates to receive net cash proceeds of approximately $1.1 billion.

In addition, iStar expects to record around $40 million of net expenses in the fourth quarter of 2021 associated with the transaction, and approximately $565 million of net gains in the quarter in which the transaction is completed.