Realty Income Corporation announced the establishment of a strategic relationship with GIC. The partnership will initially entail the formation of a programmatic joint venture primarily focused on build-to-suit development of high-quality logistics real estate pre-leased under long-term net leases to tenants with investment grade-equivalent credit profiles in the U.S. The JV will have over $1.5 billion of combined capital commitments from Realty Income and GIC; the construction financing and take out purchase commitment from Realty Income of a $200 million build-to-suit, U.S. dollar-denominated industrial portfolio in Mexico, representing Realty Income's first investment in Mexico; and GIC closing as a cornerstone investor in Realty Income'sU.S. Core Plus fund. This relationship is expected to be long-term and programmatic in nature and is a component of Realty Income's private capital initiative aimed at diversifying its sources of capital beyond the public capital markets, while expanding its investable universe to core investment opportunities with attractive potential long-term return profiles.
In conjunction with this announcement, Realty Income and GIC have agreed to terms on the formation of a joint venture to finance the development and purchase of build-to-suit assets in the U.S. with a focus on industrial assets leased to investment grade-equivalent tenants. Purchased assets under the JV will be majority owned by Realty Income. In addition, Realty income and GIC, alongside GIC's development partner, Hines, have agreed to terms on the development financing and takeout purchase of a portfolio of industrial properties in Mexico.
As part of this transaction, Realty Income and G IC will jointly finance the construction of the properties, and Realty Income has agreed to purchase the properties upon completion of construction for a combined purchase price of approximately $200 million. These logistics assets are located in Mexico City and Guadalajara and are pre-leased to Global Fortune 100 companies under long term net lease agreements. Greenhill, a Mizuho Dividend Company®?, and Realty Income's U.S. Core Plus fund, GIC will also be a strategic partnership with Realty Income and GIC, alongside G IC's development partner Hines, have agreed to Terms on the development financing and take out purchase of a portfolio of industrialproperties in Mexico.
As part of This transaction, Realty Income andGIC will jointly finance the construction of The properties, and Realty income has agreed to purchase the properties within the combined purchase price of approximately $200 million.
