October 3, 2016 DevilFoehn

Workspace Property Trust closes acquisition on $969 Million portfolio from Liberty Property Trust

HORSHAM, Pa., —Workspace Property Trust (“WPT”), a real estate investment firm led by longtime successful industry veterans Thomas Rizk and Roger Thomas, today announced the purchase of 108 office and flex buildings, plus 26.7 acres of land, in five markets from Liberty Property Trust (NYSE: LPT) for approximately $969 million.  The acquisition was made in partnership with Safanad, a global principal investment firm, and affiliates of Square Mile Capital Management LLC (“Square Mile”), a diversified real estate investment firm.

This acquisition is the second significant real estate transaction by WPT and has expanded its portfolio to149 properties totaling approximately 10 million square feet.   In less than one year, WPT has acquired over $1.2 billion dollars of assets, consistent with its strategic plan to build a portfolio of superior, well-positioned suburban real estate assets.

Thomas Rizk, Chief Executive Officer and a founding principal of WPT, commented, “This exciting acquisition is a key step in establishing our platform for investment in high quality suburban office properties in select markets.  The addition of Safanad,with its management in world wideinvestments and Square Mile, which along with its affiliates has approximately $15 Billion of assets under management, provides the financial strength to continue building our portfolio.”

Along with the acquisition of these properties, Workspace has hired approximately 50 new employees to expand its franchise.   Roger Thomas, President, Chief Operating Officer and a founding principal of WPT,stated,”Everyone at WPT is ecstatic to have acquired these well-maintained, well-located assets from Liberty.  This exceptional acquisition adds tremendous growth and potential to our platform.  We have built an outstanding organization with fantastic talent in all aspects of owning, managing, and leasing quality suburban properties.  We look forward to a successful future as a leader in suburban office markets.”

This portfolio acquired by Workspace Property Trust includes suburban submarkets in Philadelphia, Minneapolis, Tampa, Phoenix, and South Florida.  The portfolio boasts strong, consistent overall occupancy and financial performance.  Workspace Property Trust closed on its first transaction last year when it purchased 41 office and flex buildings in Horsham, PAfrom Liberty Property Trustfor approximately $245.3 million.   WPT’s first acquisition was in partnership with Forum Partners, JMP Group, and EverWatch Capital.

Kamal Bahamdan, Chief Executive Officer and Founder of Safanad commented, “Safanad’sapproach to investing aligns very well with Workspace Property Trust’s vision and strategic plan of building a strong overall portfolio in vibrant submarkets.  We have great confidence that our partnership with Tom and Roger,together with their original investing partners and Square Mile, will create tremendous value in these suburban office markets.”

Elliot Rattner, Principal for Square Mile commented, “We are pleased to join WPT, its existing capital partners and Safanad in this high quality and diversified portfolio acquisition. Square Mile invests utilizing a value-oriented approach to commercial real estate assets through alignment with likeminded and institutional sponsors. Tom, Roger, and the WPT portfolio fit squarely with these objectives and we are excited to be a part of this important step towards their firm’s growth and future success.”

 

This portfolio breakdown of assets is as follows:

City# of BuildingsSquare FeetLand (Acres)
Arizona141,078,65218.1
Florida (South)111,136,0208.6
Florida (Tampa)341,799,568
Minnesota191,488,832
Pennsylvania302,075,764
Total1087,578,83626.7
    

 

FTI Consulting, Eastdil Secured, and JMP Securities served as advisors to Workspace Property Trust on this transaction.

J.P. Morgan Securities, LLC served as advisor to Liberty in connection with this transaction.

About Workspace Property Trust

Workspace Property Trust is a privately held, vertically integrated, full service commercial real estate company specializing in the development, management, and operation of office and flex space.  Workspace Property Trust is a partnership among Rizk Ventures, Safanad, Square Mile Capital, Forum Partners, JMP Group, and EverWatch Capital.

www.workspaceproperty.com

About Safanad

Safanad is a global principal investment firm that invests in real estate and private equity in specific industries in a highly disciplined way.  As principal investors, Safanad preserves and grows wealth through a disciplined industry focused investment approach that builds relationships with exceptional management partners and top industry leaders. With offices in New York, Dubai, and London, the firm seeks to identify global investment opportunities poised to deliver competitively superior returns, where the firm’s capital and investment expertise support value creation. For more information, visit www.safanad.com

About Square Mile Capital Management, LLC

Square Mile Capital Management LLC is an integrated institutional real estate finance and investment management firm based in New York. Square Mile’s large U.S. footprint, enhanced by the firm’s strategic partnership with USAA Real Estate Company, enables Square Mile to leverage proprietary market insights through a unified sourcing and investment philosophy that positions the firm to capitalize upon opportunities through all phases of the commercial real estate cycle. Square Mile’s opportunistic investment platform takes a value oriented approach to its activities, with an emphasis on opportunities to acquire or capitalize real estate assets or enterprises that are undervalued, complex or undercapitalized. Square Mile’s commercial real estate debt platform provides customized capital solutions for real estate owners and developers throughout the United States. http://www.squaremilecapital.com

Source: Workspace Property Trust