HOUSTON, Oct. 3 /PRNewswire-FirstCall/ -- Weingarten Realty Investors and Mercantile Real Estate Advisors, Inc. ("MREA") announced the formation of a strategic joint venture to acquire and operate industrial properties within target markets across the United States. WRI will oversee the acquisition process and the ongoing management and leasing of the properties. Acquisitions will be focused on bulk warehouse and business distribution properties within target markets across the United States. The partners plan to invest $500 million in total capital over the next two years including leverage targeted at approximately 50% of total capital. As part of this transaction, Weingarten provided the initial "seeding" for the joint venture, contributing sixteen buildings at five properties with a total value of $123 million and aggregating more than two million square feet. These properties are located in the San Diego, Memphis, and Atlanta markets.
Macquarie Capital Partners LLC acted as the exclusive financial advisor to Weingarten Realty Investors in connection with this transaction. MREA served as investment advisor to the AFL-CIO Building Investment Trust ("BIT").
Drew Alexander, President and CEO of WRI, stated, "WRI is very proud to have MREA and the BIT as a strategic partner. This joint venture will further diversify Weingarten's available capital resources, allow for additional growth in our industrial and retail portfolio, and enhance return on investment."
Kevin P. McCarthy, President and CEO of MREA, commented, "This venture enables us to co-invest with one of the premier public real estate companies and access industrial product in strategic markets."
As one of the largest real estate investment trusts listed on the New York Stock Exchange, Weingarten Realty Investors is focused on delivering solid returns to shareholders by actively developing, acquiring, and intensively managing properties in 21 states that span the southern portion of the United States from coast to coast. The Company's portfolio of 360 properties includes 295 neighborhood and community shopping centers and 65 industrial properties aggregating more than 48 million square feet.
Mercantile Real Estate Advisors, Inc., a wholly owned subsidiary of Mercantile Bankshares Corporation, provides real estate advisory services for institutional clients, including the BIT. The BIT is a $2.4 billion bank collective trust fund serving pension plans with union beneficiaries. Additional information can be found at http://www.aflcio-bit.com/ .
