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BGO Industrial REIT Acquires 9.4 Million SF Industrial Portfolio

BGO Industrial Real Estate Income Trust Inc., a non-traded REIT sponsored by global institutional investment management firm BentallGreenOak, announced that they entered into a contribution agreement with an affiliate of Sun Life Financial Inc. and BGO Genesis Holding LLC wherein Sun Life contributed its 56.5% interest in a joint venture that indirectly owns a portfolio of industrial assets to BGO IREIT in exchange for 13,000,000 Class E units at a price per unit equal to $10.00.

The portfolio consists of approximately 9,417,333 square feet in 29 separate industrial buildings located throughout the Midwest. BGO IREIT says it is divided into four assets that consist of three regional portfolios in St. Louis, Cincinnati, and Kansas City, and one stand-alone industrial property in the Chicago metropolitan statistical area. Originally, the portfolio was developed in partnership between NorthPoint Development and Northwestern Mutual between 2012 and 2023.

The existing partners, NorthPoint, Sun Life, and BGO Client, recapitalized the portfolio, acquiring it from a partnership between NorthPoint and Northwestern Mutual on September 29, 2022. The portfolio was financed with a senior loan of $560.4 million (60% loan to value ratio) at an interest rate of 4.0% in two tranches consisting of four- and five-year terms.

According to BGO IREIT, the purchase price of the joint venture is equal to $130 million, which represents the aggregate capital contributions made by Sun Life.

As of March 31, 2023, the estimated gross asset value of the portfolio was approximately $948 million (inclusive of cash on hand and the value of certain debt). Following the acquisition, BGO IREIT’s 56.5% interest in the joint venture represents an indirect 34.2% ownership interest in the portfolio.

As The DI Wire reported earlier this week, BGO Industrial Real Estate Income Trust Inc., announced its registration statement on Form S-11 in connection with its initial public offering of common stock was declared effective by the Securities and Exchange Commission.

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