GIC Jointly Acquires NYSE-listed Property Investor For US$14bil
USA – Singapore’s sovereign wealth fund GIC has teamed up with property investment company Oak Street to acquire STORE Capital Corporation in an all-cash transaction valuing the REIT at US$14 billion, reported The Business Times on Thursday evening (15 September, SGT).
“Under the terms of the definitive merger agreement, STORE Capital stockholders will receive US$32.25 per share in cash, which represents a premium of 20.4 percent to its closing stock price as of 14 September 2022 and a premium of 17.8 percent to the 90-day volume weighted average stock price through that date,” said the buyers in a press release.
Store Capital is a net-lease real estate investment trust (REIT) listed on the New York Stock Exchange (NYSE) that invests in properties fully leased by a single tenant. The trust owns a portfolio of investments in over 3,000 property locations across the US.
Meanwhile, Oak Street is an arm of NYSE-listed global alternative asset manager Blue Owl that focuses on buying single tenant properties across office, industrial, and essential retail sectors that are net-leased long-term to investment-grade and creditworthy tenants. As of 30 June 2022, it had assets under management (AUM) of US$16.6 billion.
The deal, which was unanimously approved by STORE Capital Corporation’s board, is expected to be completed by Q1 2023, subject to the approval of the REIT’s shareholders and the satisfaction of certain customary closing conditions. In addition, the closing of the transaction is not subject to any financing conditions. Thereafter, the REIT will be delisted from NYSE.
Moreover, the definitive merger agreement includes a 30-day “go-shop” period that allows Store Capital to actively solicit and consider alternative acquisition proposals. This provision will expire on 15 October 2022.