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FORTERRA BUILDING PRODUCTS

QUICK FACTS:

•49-Property, North American Industrial Portfolio

•4 Million Square Feet

•Exclusive advisor to Lone Star Funds, Hudson Advisors and Forterra Building Products

•Acquired by Publicly Trade REIT, W.P. Carey

•20-Year Master Lease Structure

•$217 Million USD in Proceeds

The Situation:

  • Hudson Advisors, the asset management division of Dallas based private equity sponsor Lone Star Funds engages CBRE as exclusive advisor for the sale/leaseback of owned real estate in the United States and Canada for their portfolio company, Forterra Building Products.

The Challenges:

  • Special purpose assets in tertiary/rural markets
  • Highly cyclical industry
  • Seller was a spinoff of a large corporate conglomerate with limited standalone reporting
  • Leveraged buyout credit undergoing spinoffs of its subsidiaries
  • Single-buyer requirement for multi-country portfolio
  • Environmental contamination issues
  • Accelerated closing requirement to fund add-on acquisition
  • Operating lease treatment requirement

The Results:

  • 25-day marketing campaign resulted in nine (9) competitive offers
  • After a fully-vetted selection process, W.P. Carey – a New York City based publicly traded REIT – is selected.
  • Two (2), 20-Year Master Leases: Master Lease for all US Properties (43), Master Lease for all CAN Properties (6).
  • Total proceeds in excess of $217 million