The FCIE venture will invest in various types of real estate in the European logistics hubs of Rotterdam, Amsterdam, and the Antwerp/Brussels/Ghent triangle in Belgium, including land for build-to-suit and speculative development, existing industrial facilities to be redeveloped, repositioned and leased, and sale-leasebacks.
Total investment capacity of the new venture is about $475 million. Expected capitalization is 35 percent equity and 65 percent debt. CalSTRS has agreed to an initial equity contribution of up to $150 million and FIRT has agreed to an initial contribution of up to $17 million. These represent a 90 percent and 10 percent equity interest, respectively.
Credit facilities in multiple currencies have been arranged with New York-based lead lender WestLB AG.
CalSTRS, the nation's second-largest public pension fund, holds a $175 billion portfolio.
FIRT will manage the venture and receive fees for development, property management, leasing, dispositions and portfolio administration. In addition, First Industrial has the opportunity to earn performance-based incentives.
According to FIRT, since the joint venture will recycle capital back into itself as properties are sold, the $475 million initial investment capacity is a “point-in-time” limit and total investments can exceed $475 million over the life of the venture.
The initial term of the venture is 10 years.
First Industrial Realty Trust and CalSTRS first joined forces in 2006 when they formed a joint venture, FirstCal3, that will raise up to $1.6 billion to develop large logistics facilities.
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The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
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