Search
 

GE Capital, Cabot Launch Industrial Strength Venture

BOSTON-The $250-million pact was kicked off with a $12-million acquisition of five industrial properties in Atlanta.

By Joe Clements | Updated on October 02, 2000

BOSTON-In a major boost for one of the state’s busiest REITs, General Electric Capital Real Estate has announced a $250-million joint venture with Cabot Industrial Trust to buy and develop industrial properties throughout the country. In conjunction with the arrangement, the partnership has made its first acquisition, a $12-million purchase of five buildings in Atlanta.

“We believe that Cabot is one of the better operators in the industrial sector, with its proven track record of operating and investing in industrial properties,” GE Capital CEO Michael Pralle said in unveiling the union. “This strategic alliance between GE Capital and Cabot will enable us to pursue opportunities in an area we believe will provide strong returns given the continued growth of the US economy.”

Cabot President Robert Patterson says the partnership will primarily acquire properties, with GE committing 80% of the equity, or $100 million, and Cabot the remaining 20% of the equity, or $25 million. The balance will be funded by debt for a target leverage rate of 50%.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.