Jernigan Capital completes Heitman JV with USD75m institutional co-investment
An affiliate of Heitman Capital Management has committed USD75 million to the previously announced joint venture between Jernigan Capital and Heitman, with the JV reaching the USD122.2 million target capitalisation in the process.
In addition, the Company announced that it has completed the contribution of three existing development property investments aggregating USD41.9 million of aggregate capital commitments. As of the time of contribution of the three investments, the Company had advanced an aggregate of USD8.1 million against the USD41.9 million aggregate capital commitment, with the Heitman Joint Venture assuming the obligation to fund the remaining USD33.8 million of commitments toward those self-storage projects, all of which are located in the Miami-Ft. Lauderdale MSA. Following this contribution, the Heitman Joint Venture has USD80.3 million of remaining capital to fund new self-storage investments.
“We are delighted to have completed the Heitman Joint Venture with a USD75 million capital contribution from one of the preeminent investors in the world to go along with a USD35 million commitment from Heitman, one of the leading real estate investors in the United States,” says Dean Jernigan, Chairman and Chief Executive Officer of the Company. “The quality of our partners in this joint venture highlights the tremendous opportunity our business model presents for our stockholders, self-storage entrepreneurs looking to take advantage of the unprecedented fundamentals of the self-storage sector and our talented JCAP team.”
John Good, the Company’s President and Chief Operating Officer, adds: “The Heitman Joint Venture provides us with efficient funding that allows us to continue closing high quality self-storage development investments from our robust pipeline at returns that should prove to be very accretive to our book value. We have made good progress in structuring and documenting a USD45.0 million credit facility that is expected to grow to USD60.0 million as participants are secured. We expect the credit facility to close by the end of April. We are confident that these capital solutions will allow us to continue creating value through high-return self-storage development investments."