Four Springs’ Reg D REIT Secures Investment from Carlyle’s Global Credit Platform
Four Springs Capital Trust, a Regulation D real estate investment trust, has received a $300 million investment from The Carlyle Group’s (NASDAQ: CG) global credit platform.
Four Springs Capital Trust, a Regulation D real estate investment trust, has received a $300 million investment from The Carlyle Group’s (NASDAQ: CG) global credit platform. The Carlyle Group is a private equity firm with $260 billion of assets under management as of March 31, 2021.
Four Springs plans to use the funds to scale up its portfolio which currently includes 122 properties across 29 states. The properties are leased to 56 tenants across 31 different tenant types that fall into three major property types: industrial, medical and retail.
Four Springs said that “Carlyle developed an in-depth and differentiated view on many of [its] tenants using knowledge provided through direct investment in many of those tenants or past diligence on them and their competitors.”
Four Springs expects to close on approximately $250 million of new properties within the next year.
Four Springs Capital Trust recently completed a $150 million institutional financing from Goldman Sachs Asset Management and Magnetar Capital to continue building the REIT portfolio, as well as to provide property inventory to its Delaware statutory trust platform, Four Springs TEN31 Xchange. The company noted that its DST offerings for 2021 will continue to focus on industrial and medical properties subject to long-term net leases to creditworthy tenants.
“We are pleased to support the expansion of Four Springs, a company with whom we have a long-standing relationship,” said Alex Popov, Carlyle’s head of illiquid credit strategies. “The team has a strong track record of deploying capital in a thoughtful manner with a consistent approach to underwriting that focuses on both real estate quality and tenant creditworthiness. Leveraging insights from across Carlyle and our global credit platform, we moved quickly to assess this opportunity and provide a tailored solution that is designed to help Four Springs realize its considerable growth potential.”
Carlyle’s $59 billion global credit platform pursues investments in privately negotiated capital for upper middle market borrowers. This transaction adds to the approximately $1 billion in real estate credit that the platform has invested since 2017.
Four Springs Capital Trust owns and operates a portfolio of industrial, healthcare and necessity retail properties net leased to creditworthy tenants under long-term leases.
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