ElmTree Funds Taps China Life for $950 Million Recap of Net Lease Portfolio

ElmTree Funds net leased tenant roster.
ElmTree Funds net leased renter roster. ElmTree Funds LLC, a personal equity real estate firm based in St. Louis, announced it has secured a $950 million recapitalization of among its net lease portfolios with a wholly-owned subsidiary of China Life Insurance coverage Group, the largest financial insurer in China.

The JV will initially own 48 single-tenant industrial, workplace and health care properties amounting to more than 5.5 million square feet. China Life will supposedly obtain a 95% interest in the properties with ElmTree maintaining 5%.

ElmTree Funds said most of the properties are just recently built, build-to-suit jobs mainly leased to investment-grade tenants and located in secondary and tertiary markets that display strong long-term financial and group basics.

“This transaction provides China Life immediate scale and diversification in the United States market. We anticipate an extremely efficient, long-term relationship with China Life as we explore extra chances to invest together,” stated Jim Koman, managing principal at ElmTree Funds.

Under the agreement, China Life has the choice to purchase 2 extra single-tenant net lease residential or commercial properties from ElmTree Web Lease Fund II, a fund formed in 2012. ElmTree launched its third net lease fund last October.

ElmTree Funds will continue to act as asset supervisor of the portfolio and utilize a core/core-plus financial investment technique.

Hodes Weill Securities, LLC, a worldwide real estate advisory shop, functioned as the exclusive monetary consultant to ElmTree Funds.

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