The $690 billion Singapore sovereign wealth fund GIC, in partnership with Oak Street, completed the $15 billion acquisition of STORE Capital Corp, an internally managed net-lease REIT that invests in single tenant operational real estate, or STORE.
The all-cash transaction was originally announced in September 2022 and ended up at $32.25 per share and included assumed debt, officials announced last week.
“We are thrilled to complete the STORE Capital acquisition,” said Lee Kok Sun, chief investment officer at GIC. “As one of the largest M&A transactions in the U.S. real estate market, it highlights GIC’s ability to execute at scale in areas we have high conviction in.”
Adam Gallistel, head of Americas, Real Estate at GIC, added, “GIC has had the privilege of working closely with STORE’s team over the last several months. We are extremely impressed with management’s execution capabilities and our conviction in the platform has only grown. As macroeconomic volatility continues, we are proud to provide STORE with the funding and support needed to drive value and deliver long-term financing solutions to middle market U.S. companies.”
Chicago-based Oak Street Real Estate Capital was purchased by Blue Owl Capital at the end of 2021. The firm’s focus on structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital proved attractive.
“We are extremely excited to close on our previously announced acquisition of STORE Capital alongside our partners at GIC and begin our collaboration with the STORE management team,” said Marc Zahr, who is now head of Real Estate at Blue Owl. “This is a highly favorable environment to deploy capital into net lease structures which can help deliver more predictable income in an unpredictable environment.”