FRP Holdings, Inc. Announces Contract to Sell Its Industrial Warehouse Portfolio to Blackstone for $358.9 Mil
FRP Holdings, Inc. (NASDAQ-FRPH) Jacksonville, Florida; March 22, 2018 –
FRP Holdings, Inc. (the “Company” ) today announced that it has entered into a contract to sell its 41 industrial warehouses and two adjacent lots to an affiliate of Blackstone Real Estate Partners VIII, L.P. (“Blackstone”), for a total purchase price of $358.9 million, subject to adjustment. The sale is subject to customary closing conditions, including approval by the Company’s shareholders. The transaction is expected to close in the second or third quarter of 2018. Details of the transaction and the conditions to its closing are described in the Company’s Current Report on Form 8-K filed on this date with the Securities and Exchange Commission (“SEC”).
Commenting on the transaction, John D. Baker II, Executive Chairman and CEO of the Company stated: “The reduction in corporate income tax rates in a low cap rate environment created too good an opportunity to forgo. We look forward to redeploying these proceeds in our other business segments including Anacostia, Land Development, and Mining/Royalties segments where more recently we have enjoyed more favorable returns.”
Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has approximately $115 billion in investor capital under management. Blackstone’s real estate portfolio includes hotel, office, retail, industrial and residential properties in the US, Europe, Asia and Latin America. Major holdings include Hilton Worldwide, Invitation Homes (single family homes), Logicor (pan-European logistics) and prime office buildings in the world’s major cities. Blackstone real estate also operates one of the leading real estate finance platforms, including management of the publicly traded Blackstone Mortgage Trust.
Eastdil Secured, L.L.C. serves as the Company’s exclusive broker in connection with the sale, and Houlihan Lokey Capital, Inc. served as financial advisor to the Company. Nelson Mullins Riley & Scarborough LLP serves as legal counsel to the Company, and Simpson Thacher & Bartlett LLP serves as counsel to Blackstone on the transaction.