Safehold and SWF Form Joint Venture
Posted on 04/05/2023
The real estate investment trust (REIT) Safehold Inc. has entered into a joint venture agreement with an unspecified sovereign wealth fund. Safehold is the first publicly traded company with a business centered on ground lease structure. Safehold has a US$ 6 billion portfolio. Safehold will spend US$ 275 million for a 55% interest in the joint venture, and the sovereign wealth fund will offer US$ 225 million for a 45% interest. Marcos Alvarado, President and Chief Investment Officer at Safehold says the deal will provide “accretive capital to help serve our customers.” Safehold targets multifamily, office, industrial, hospitality, and student housing properties to achieve greater profitability.
SWFI believes GIC Private Limited is the unnamed sovereign wealth fund, but this has not been confirmed by GIC.
On March 31, 2023, Safehold closed on the previously announced merger of iStar Inc. and Safehold Inc. The merger represents the culmination of the companies’ multi-year strategy to grow the innovative ground lease ecosystem. Following the closing, the combined company will operate under the name Safehold Inc. and its common stock will trade under the ticker “SAFE” on the New York Stock Exchange.
