Four Springs Capital Trust, a private real estate investment trust that invests in single-tenant net lease real estate, announced that funds managed by Guggenheim Investments have acquired $40 million of the company’s Series E preferred shares.
As part of the transaction, the REIT’s board of trustees will be increased from seven to eight members, and Greg Kranias of Guggenheim Investments will join the board. In addition, Matt Settle of Guggenheim Investments will be designated as an observer to the board.
Four Springs plans to use the $40 million proceeds to acquire additional net lease properties in its pipeline, repay a portion of the debt under its credit facility with KeyBank N.A., and for working capital and other general corporate purposes.
“We believe there will be tremendous synergies between our two organizations that will enable us to execute on our growth strategy and create value for our shareholders,” said Coby Johnson, president and chief operating officer of Four Springs.
“We were attracted to Four Springs by their successful track record of investing in net lease real estate and the high-quality portfolio they had assembled with their disciplined investment approach,” said Greg Kranias of Guggenheim Investments. “We are confident that the Four Springs management team will be able to leverage their robust net lease investment platform to grow Four Springs into a leading net lease REIT and deliver attractive returns to its shareholders.”
Four Springs Capital Trust focuses on acquiring a diversified portfolio of retail, industrial/warehouse and healthcare properties net leased to investment grade and other creditworthy tenants under long-term leases.