12.07.2022 21:47:00
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SANTÉ Realty Investments Completes $570 Million Raise for its Ground Lease Fund
TEMPE, Ariz., July 12, 2022 /PRNewswire/ -- SANTÉ Realty Investments announced today the completion of a $570 million capital formation for its Ground Lease Fund. The funding was procured through investment bank advisor Global Impact Assets.
Jim Small, CEO of SANTÉ Realty Investments said, "With our firm's focus on ESG and socially responsible investing, we selected Global Impact Assets as our investment bank advisor due to their long history of successfully sourcing "right fit" capital for real assets like our U.S. ground leases."
Sale-Leaseback financing in the form of ground leases has become an important financing option for real estate investors around the country. Separation (or "bifurcation") of the building from the ground, which is then leased back to the building owner, provides greater capital efficiency and ultimately a greater financial return for the building owner. Since the ground lease is guaranteed by the building, ground lease investments are extremely attractive to institutional investors seeking core real estate.
SANTE Realty's building-owner clients are able to use this non-recourse capital for property acquisitions, debt or equity recapitalizations, and even value-add property renovations. By locking in capital costs similar to a permanent interest-only payment, the customers tie up less capital creating a higher cash on cash return, and upon sale of the property, a much higher IRR.
This $570 million will be deployed over the next 24 months to SANTE's building-owner clients on stabilized commercial properties through the firm's SANTE Standard Ground Lease™ program.
ABOUT SANTÉ REALTY INVESTMENTSSANTÉ Realty Investments is a purpose driven organization delivering private equity in the real estate sector where the firm has high conviction of being able to deliver superior returns to its institutional investors. The firm was founded in 2009 and has grown to be an industry leader in commercial real estate both in the US and Europe by leveraging its proprietary methodology including the SANTE Acquisition Advantage™, SANTE Due Diligence Discovery™, SANTE Asset Management Method™, & SANTE Investor Cash Flow Maximizer™ programs.
Further information please contact Dave Shaw, Managing Director of Capital Markets for SANTÉ Realty Investments at 602-753-3538 or via email at dshaw@santerealty.com
Additional background information is available at www.SANTErealty.com.
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SOURCE SANTÉ Realty Investments
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