DC Industrial Liquidating Trust to Sell Final 10 Properties by December 11
November 2, 2017 | James Sprow | Blue Vault
DC Industrial Liquidating Trust (the “Trust”) was formed on September 18, 2015, to hold and liquidate the 11 properties excluded from the merger of Industrial Income Trust Inc. (“IIT”) with and into a subsidiary of Western Logistics, LLC, an affiliate of Global Logistics Properties Limited.
On November 4, 2015, IIT completed the merger with Western Logistics. At the merger effective time, each share of common stock of IIT then issued and outstanding was converted into the right to receive an amount in cash equal to $10.30 per share, without interest and subject to any applicable withholding tax obligations. Immediately prior to completion of the merger on November 4, 2015, IIT distributed to its stockholders, in a special dividend, all of the units of beneficial interest in DC Industrial Liquidating Trust, together with net cash proceeds of borrowings under a credit facility, with each share of IIT common stock receiving (i) one unit of beneficial interest in the Trust valued at an estimated $0.56 per share, and (ii) an additional $0.26 per share of net cash proceeds.
On October 20, 2017, the Trust entered into a purchase and sale agreement with Black Creek Industrial Open End Fund OP LP to sell a portfolio of 10 properties for an aggregate purchase price of $190.5 million. The transaction is expected to close on or before December 11, 2017. The Trust estimates that approximately $0.55 net per unit of beneficial interest will be distributed to unitholders upon consummation of the transaction. Together with the cash payments of $10.30 and $0.26 per share in November, 2015, the $0.55 per share would bring the value of the full-cycle liquidation of Industrial Income Trust Inc. to approximately $11.11 per share.
Industrial Income Trust Inc. commenced its initial public offering in 2009 to raise up to $2.0 billion in shares of common stock which was offered initially at $10.00 per share. In a follow-on offering, the REIT issued shares at $10.40 per share. In July, 2013, the REIT terminated the follow-on offering having raised aggregate proceeds of $2.2 billion, including DRIP, in its public offerings. As of December 31, 2014, the REIT’s portfolio included 283 industrial buildings totaling approximately 57.6 million square feet located in 10 markets throughout the U.S.
