Funds managed by Apollo have invested more than $1 billion in a joint venture with the trust, which will use the proceeds to repay a significant portion of its credit facility.
Real estate investment firm Brixton Capital contributed the property through a tax-deferred 721 exchange in return for partnership units.
Harrison Street's process sold 91% of shares offered, with 41% transacting at a 15% discount to NAV versus the 20% initially requested.
We highlight the investment strategy, share class structure, and other details of the non-listed perpetual-life debt REIT.
The iCapital Virtus Diversified REIT will provide Canadian wealth managers with streamlined exposure to VREIT's non-listed real estate portfolio.
The sale-leaseback deal, completed through a JV with Fetner Properties, follows the fund's conversion from a tender offer to an interval structure, while still being taxed as a REIT.
The trust repurchased approximately $120 million of outstanding shares in Q1, representing around 1.5% of its $8.1 billion March NAV.
In March, the $22 billion non-traded fund was the target of an unsolicited tender offer from Saba and Cox Capital at a steep discount.
The announcement comes as investors in Blue Owl's non-traded BDC shunned an earlier Saba and Cox Capital joint-offer to repurchase shares at a steep discount.
The non-traded fund currently has more than $2 billion in outstanding redemption requests.
