Goodwin’s Real Estate Industry group led a multidisciplinary cross-office team in the representation of ElmTree Funds, LLC’s $950 million recapitalization with a wholly owned subsidiary of China Life Insurance Group of an existing ElmTree net lease portfolio. The joint venture’s portfolio will initially comprise 48 single-tenant properties aggregating more than 5.5 million square feet across 20 states. The transaction agreement provides for the acquisition of two additional single-tenant net lease properties from ElmTree Net Lease Fund II, subject to certain conditions.
The vast majority of the assets in the portfolio are recently constructed build-to-suit properties that are primarily leased to investment grade tenants and situated in secondary and tertiary markets that exhibit strong long-term economic and demographic fundamentals. ElmTree Funds will continue to serve as asset manager of the portfolio and employ a core/core-plus investment strategy.
ElmTree Funds, LLC is a leading private equity real estate firm and seasoned fund manager to institutional and private investors. ElmTree’s investment philosophy focuses on creating attractive risk-adjusted returns for its investors in the commercial real estate net lease, sale-leaseback and build-to-suit sectors. Since its founding in 2011, ElmTree Funds has acquired, developed or financed more than $1.5 billion of office, industrial and healthcare properties.
China Life Insurance (Group) Company is one of the largest insurance corporations and institutional investors in China's capital market. Its business scope covers life insurance, property and casualty insurance, pension, asset management, alternative investment, overseas business and others. By the end of 2015, its consolidated total assets exceeded RMB 3 trillion, which is ranked as the highest in the industry in China.
For additional details on the transaction, please read the press release.