SOVEREIGN wealth fund GIC, together with real estate investment firm Oak Street, will acquire New York Stock Exchange (NYSE)-listed net-lease real estate investment trust (Reit) Store Capital in an all-cash transaction valued at US$14 billion.

In a media statement on Thursday (Sep 15) issued jointly by the Singapore institutional investor and the other 2 parties, it was announced that Store Capital shareholders will receive US$32.25 per share under the definitive agreement.

This is a premium of 20.4 per cent to Store Capital’s closing stock price as of Sep 14, 2022 and a premium of 17.8 per cent to the 90-day volume weighted average stock price through that date.

Store Capital is an internally managed net-lease Reit that acquires, invests and manages single tenant operational real estate. The Reit owns a portfolio that consists of investments in more than 3,000 property locations across the United States.

Oak Street, a division of NYSE-listed global alternative asset manager Blue Owl, focuses on acquiring single tenant properties across industrial, essential retail and office sectors, net-leased long-term to investment grade and creditworthy tenants. It had US$16.6 billion in assets under management as of Jun 30, 2022.

The transaction, which has the blessing of the Store Capital board, is expected to close in the first quarter of 2023, subject to approval by Store Capital shareholders and the satisfaction of certain customary closing conditions. The company will be delisted thereafter.

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The closing of the transaction is not subject to any financing conditions, however.

The definitive merger agreement includes a 30-day “go-shop” period that will expire on Oct 15, 2022, which permits Store Capital to actively solicit and consider alternative acquisition proposals.

Store Capital will declare and pay its third-quarter cash dividend in the ordinary course, but suspend payment of any further regular quarterly dividends through the closing of the deal.