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JV Offers REIT Capital Source as Well as Deals

OAK BROOK, IL-A dividend from the $392.7-million portfolio sale to James Fielding Funds Management Limited is a source of capital for CenterPoint Properties Trust, as the REIT can use proceeds to buy replacement assets or finance development projects.

By Mark Ruda | Updated on April 20, 2005

OAK BROOK, IL-A $392.7-million deal with James Fielding Funds Management Limited, which will move 10.1 million sf into a joint venture with the affiliate of Australia-based Mirvac Group over the next year, takes dispositions off CenterPoint Properties Trust’s corporate to-do list. Except for a smattering of sales to current tenants, the phased disposition of 41 buildings throughout CenterPoint Properties Trust’s tri-state market leaves REIT officials with nothing it wants to sell.

“Virtually all of the selling is done,” says president and chief financial officer Paul Fisher. That allows the REIT to focus on its development projects and leasing properties in the rest of its 38-million-sf portfolio, adds chief executive officer Michael M. Mullen.

Fisher adds the deal goes beyond establishing a trading partner for the next three years and knowing how much capital it has to put to higher-yielding uses in the next year. “It represents a substantial amount of very cheap capital for us,” Fisher says. “We can invest more with greater certainty.”

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