HEALTH Realty Investments raises $570 million for its land lease fund
TEMPE, Arizona., July 12, 2022 /PRNewswire/ — HEALTH Realty Investments today announced the completion of a $570 million capital formation for its land lease fund. The funding was secured through investment banking adviser Global Impact Assets.
Jim SmallCEO of SANTE Realty Investments, said, “With our company’s focus on ESG and socially responsible investing, we have selected Global Impact Assets as our investment banking advisor due to its long history of successful search for “just” capital for real assets like our US soil leases.”
Sale-leaseback financing in the form of land leases has become an important financing option for real estate investors across the country. Separating (or “bifurcating”) the building from the ground, which is then leased to the building owner, provides greater capital efficiency and ultimately a better financial return for the building owner. As the ground lease is secured by the building, ground lease investments are extremely attractive to institutional investors looking for basic real estate.
SANTE Realty’s building owner clients can use this non-recourse capital for real estate acquisitions, debt or equity recapitalizations, or even value-added real estate renovations. By locking in capital costs similar to a permanent interest-only payment, clients tie up less capital, creating a higher cash return and, when selling the property, a much higher IRR.
This $570 million will be rolled out over the next 24 months to SANTE’s landlord clients on stabilized commercial properties through the company’s SANTE Standard Ground Lease™ program.
ABOUT HEALTH REAL ESTATE INVESTMENTS
HEALTH Realty Investments is a purpose-driven organization that provides private equity in the real estate industry where the company believes in being able to deliver superior returns to its institutional investors. The company was founded in 2009 and has become a leader in the commercial real estate industry in the United States and Europe leveraging its proprietary methodology, including SANTE Acquisition Advantage™, SANTE Due Diligence Discovery™, SANTE Asset Management Method™ and SANTE Investor Cash Flow Maximizer™ programs.
More information please contact David ShawManaging Director of Capital Markets for HEALTH Realty Investments at 602-753-3538 or by email at [email protected]
Additional general information is available at www.SANTErealty.com.
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Real estate investments SOURCE SANTÉ