Welsh Property Trust has acquired ownership of an additional 2,165,605 Class B partnership units of WPT Industrial, the operating subsidiary of WPT Industrial Real Estate Investment Trust.
This represents approximately 16.6 per cent of the Class B Units issued and outstanding prior to the acquisition and an approximate 7.4 per cent effective interest in the REIT (assuming all Class B Units are redeemed for trust units of the REIT, but otherwise on a non-diluted basis) after giving effect to the acquisition.
These additional Class B Units were acquired pursuant to the previously-announced indirect acquisition by the REIT (through the partnership) of an industrial property located in Shepherdsville, Kentucky from Welsh completed earlier today.
Each Class B Unit is redeemable by the holder thereof for cash or Units (on a one-for-one basis subject to customary anti-dilution adjustments), as determined by the general partner of the Partnership in its sole discretion. The Class B Units are economically equivalent to units and are entitled to distributions of cash from the partnership equal to the cash distributions paid to holders of the units by the REIT.
After giving effect to this purchase, Welsh now directly and indirectly owns 752,700 units (approximately 5.3 per cent of the issued and outstanding Units) and 15,225,314 Class B Units (100 per cent of the issued and outstanding Class B Units), representing an approximate 54.3 per cent effective interest in the REIT (assuming all Class B Units are redeemed for units, but otherwise on a non-diluted basis).
The number of Class B Units issued to Welsh in connection with the acquisition of the property was determined by applying a price of USD9.42 per Class B Unit, which is the 20-trading day volume-weighted average price for the units for the period immediately prior to 14 April 2014 (the date on which the acquisition of the property was announced by the REIT). Each Class B Unit was valued at CAD10.33.
Welsh acquired the 2,165,605 Class B Units as part of the consideration for the contribution of its indirect interest in the property to the partnership.