Centris Industrial Closes $350 Million Equity Partnership with Davidson Kempner, Monarch Alternative Capital and Long Pond Capital
FEBRUARY 24, 2022
Centris Industrial, Inc. ("Centris"), an externally managed private real estate investment trust (REIT), today announced the closing of an equity investment of $350 million from its partners, comprised of investment funds advised by Davidson Kempner Capital Management LP ("Davidson Kempner"), Monarch Alternative Capital LP ("Monarch"), Long Pond Capital LP ("Long Pond") and CA Ventures. The newly formed REIT was created to strategically invest in ground-up industrial and logistics projects across the United States. Centris is externally managed by Centris Holdings, LP, a real estate investment management company affiliated with CA Ventures.
In connection with the announcement, representatives of Davidson Kempner and Monarch have joined the Centris Board of Directors. The Centris leadership team is comprised of Michael Podboy, who has assumed the role of chief executive officer, with the following direct reports: Joe Trinkle as chief operating officer and Southwest market officer, Steve Rowley as chief investment officer and Southeast market officer, William Lu as executive vice president and market officer leading the REIT's expansion across the West, and Jimmy Hwang as head of investment management.
"The formation of Centris is a product of the momentum CA's industrial and logistics arm has built since launching in 2018," said Tom Scott, board chairman for Centris and chief executive officer of CA Ventures. "The profound success this skilled team has achieved in the last four years is illustrative of their ability to execute on the enormous opportunity within the sector today. I am immensely grateful for the opportunity to further our partnership with leading investment management firms Davidson Kempner, Monarch and Long Pond through their commitment to this growing, resilient asset class."
In conjunction with the closing of the initial investment, Centris has announced the closing of two transactions totaling more than $170 million in projected development costs to develop 1.75 million square feet of industrial space across Oakwood, Georgia and Houston, Texas - two markets that have seen significant demand for industrial real estate. The acquired assets include: Falcon II (468,600+ square feet) and Generation Park (1,281,000+ square feet).
"The closing of these two top-tier transactions reflect the caliber of our team of top industry talent, having worked tirelessly alongside our trusted strategic partners to ensure a swift, successful launch of Centris," said Michael Podboy, chief executive officer of Centris Industrial. "We celebrate these milestones as vital extensions of our strategic growth story as we capitalize on the sector's strong secular tailwinds to scale our premium portfolio of industrial and logistics space across the US."
"Centris provides a compelling opportunity to invest in state-of-the-art industrial real estate that will accommodate the rapidly evolving supply chain while capitalizing on the attractive supply-demand dynamics for logistics properties," said Alex Janoff, senior investment professional at Monarch and board member of Centris Industrial. "We are excited to be a part of this best-in-class partnership and to expand our relationship with the CA Ventures team."
Over the last year, CA's industrial and logistics platform has closed transactions totaling approximately $1 billion of project costs and has more than 9.7 million square feet of industrial space across currently under development in key US markets including in Phoenix, Dallas, Orlando, Atlanta, Savannah, Columbus, Richmond, Union City, Watsonville, Indianapolis and Las Vegas. All preexisting projects will continue to operate under the legacy CA Industrial structure, as will those deals unsuited for the REIT.