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iStar Rallies On News Carlyle Global to Acquire $3bn Net Lease Business -Breaking


© Reuters.

Sam Boughedda — iStar Inc (NYSE:)After announcing a deal to dispose of its net leasing business, REIT ‘Real Estate Investment Trust (REIT) saw shares increase in this session. Carlyle Group Inc’s (NASDAQ) global credit platform was acquired in a deal valued at approximately $3Billion. 

iStar gained 11.4%, Carlyle saw a 2.3% increase in its stock price.

Carlyle’s Global Credit platform will be used to finance the equity, as well as an investment in a Carlyle minority balance sheet.

Carlyle’s global credit network will be able to acquire a portfolio consisting of three-net leases that span industrial, office, and entertainment properties across the U.S.

Carlyle will be joining the iStar net leasing investment team, which oversees this portfolio.

Carlyle explained that this acquisition is part its plan to grow its Global Credit platform. In Q3 2021 it grew to record $66billion in assets under management.  

Mark Jenkins, Head of Global Credit at Carlyle, said, “We expect to grow this net lease strategy into a $10 billion business with a focus on making the product available to the retail channel over time. We set out to grow the Global Credit platform in part by expanding into adjacent, scalable areas and this is another example of how we are delivering.” 

Jay Sugarman, CEO of iStar, stated, “This sale continues our corporate strategy of simplifying portfolio and focusing our attention on the ground leasing business, which is what we consider the next step in commercial real estate.”

This transaction should close by the end of the first quarter in 2022.

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