Montgomery Street Partners Raises $500 Million in Private Follow-On Offering for The Ground Lease REIT, Inc.

REIT’s Investment Capacity Expands to $1.5 Billion on Strong Institutional Demand

DALLAS--()--Montgomery Street Partners ("MSP"), a diversified commercial real estate investment firm, announced today it has raised $500 million in a private follow-on common equity offering for The Ground Lease REIT, Inc. (“GLR” or the “REIT”). GLR’s follow-on offering increases the REIT’s investment capacity to over $1.5 billion for new opportunities and attracted strong institutional demand, including anchor commitments from a major Canadian institutional investor and Invesco Real Estate, a global leader in the real estate investment management business. Raymond James & Associates acted as financial advisor in connection with the follow-on offering.

Concurrently, GLR closed on a $150 million unsecured credit facility with an accordion feature allowing expansion of up to $400 million. The credit facility was led by NexBank and Raymond James Bank.

Murray McCabe, a Managing Partner of Montgomery Street Partners, commented: “The strong demand we’ve seen for GLR’s follow-on equity offering validates our strategy and confirms that ground leases have evolved to become an acceptable and mainstream financing tool. Investors gain access to long-duration, inflation-protected real estate assets that are cycle tested while real estate owners and developers find an efficient and accretive financing alternative. With our renewed support and funding, we look forward to continuing to broaden interest in this emerging real estate asset class and expanding our market leadership.”

About Ground Lease REIT

GLR is a dedicated vehicle formed in 2020 by Montgomery Street Partners specializing in the origination and acquisition of long-term, unsubordinated ground leases on development, value-add and stabilized properties. GLR’s ground lease structure offers real estate owners a creative capital solution to achieve incremental leverage at a lower cost of capital while reducing and deferring project equity leading to enhanced sponsor returns. GLR is focused on all asset types in the top 50 U.S. MSAs. GLR is sponsored and externally managed by MSP.

About Montgomery Street Partners

Montgomery Street Partners is a diversified commercial real estate investment firm that invests across property types and geographies. MSP makes platform and strategic entity investments in existing real estate operating companies and establishes new operating companies with seasoned executives in targeted sectors. MSP has acquired more than $6.5 billion of real estate assets, representing $3.0 billion of equity value since launching its discretionary fund business in 2015. For further information, please visit www.montgomerystreetpartners.com.

About Invesco Real Estate

Invesco Real Estate is a global leader in the real estate investment management business with $91.8 billion in real estate assets under management, 582 employees and 21 regional offices across the U.S., Europe and Asia (as of December 31, 2021). Invesco Real Estate was established in 1983 and today invests across the risk return spectrum, from core to opportunistic; in equity and debt; listed and direct; locally and globally. Invesco Real Estate is a business name of Invesco Advisers, Inc., an indirect, wholly owned subsidiary of Invesco Ltd. Invesco Ltd. is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. NYSE: IVZ; http://www.invesco.com

Contacts

Media Contact:
pr@mspcm.com

Contacts

Media Contact:
pr@mspcm.com