Jernigan Capital Completes Heitman Joint Venture with $75 Million Institutional Co-Investment
Commitment from preeminent institutional investor validates quality of investment opportunities Company contributes initial assets to joint venture Progress continues toward closing of credit facility Company files Form 10-K and turns focus back to growth of business
Jernigan Capital, Inc. (NYSE:JCAP) (the “Company”) today announced that one of the largest and best respected public pension plans in the world has executed a co-investment agreement with an affiliate of Heitman Capital Management, LLC (“Heitman”) pursuant to which such co-investor has committed $75 million to the previously announced joint venture between the Company and the Heitman affiliate (the “Heitman Joint Venture”). With the commitment, the Heitman Joint Venture has reached the $122.2 million target capitalization previously announced by the Company.
In addition, the Company announced that it has completed the contribution of three existing development property investments aggregating $41.9 million of aggregate capital commitments. As of the time of contribution of the three investments, the Company had advanced an aggregate of $8.1 million against the $41.9 million aggregate capital commitment, with the Heitman Joint Venture assuming the obligation to fund the remaining $33.8 million of commitments toward those self-storage projects, all of which are located in the Miami-Ft. Lauderdale MSA. Following this contribution, the Heitman Joint Venture has $80.3 million of remaining capital to fund new self-storage investments.
“We are delighted to have completed the Heitman Joint Venture with a $75 million capital contribution from one of the preeminent investors in the world to go along with a $35 million commitment from Heitman, one of the leading real estate investors in the United States,” said Dean Jernigan, Chairman and Chief Executive Officer of the Company. “The quality of our partners in this joint venture highlights the tremendous opportunity our business model presents for our stockholders, self-storage entrepreneurs looking to take advantage of the unprecedented fundamentals of the self-storage sector and our talented JCAP team.”
John Good, the Company’s President and Chief Operating Officer added: “The Heitman Joint Venture provides us with efficient funding that allows us to continue closing high quality self-storage development investments from our robust pipeline at returns that should prove to be very accretive to our book value. We have made good progress in structuring and documenting a $45.0 million credit facility that is expected to grow to $60.0 million as participants are secured. We expect the credit facility to close by the end of April. We are confident that these capital solutions will allow us to continue creating value through high-return self-storage development investments."
The Company also announced that it has filed its Form 10-K with the Securities Exchange Commission, which annual report is available at www.sec.gov or on the Company’s website at www.jernigancapital.com.
About Jernigan Capital
Jernigan Capital, Inc. is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners, and operators of self-storage facilities. Our mission is to be the preeminent capital partner for self-storage entrepreneurs nationwide by offering creative solutions through an experienced team demonstrating the highest levels of integrity, dedication, excellence and community, while maximizing shareholder value. The Jernigan Capital team has extensive experience in over 100 U.S. markets—from acquiring and managing self-storage properties to new self-storage development—providing JCAP with knowledge unmatched by any lender, broker or advisor to the sector. Jernigan Capital is the only source of construction and development capital focused solely on the self-storage sector.
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words “should,” “expects” and “intends” and similar terms and phrases are used in this press release to identify forward-looking statements. The ultimate occurrence of events and results referenced in these forward-looking statements is subject to known and unknown risks and uncertainties, many of which are beyond our control. These forward-looking statements are based upon the Company's present intentions and expectations, but the events and results referenced in these statements are not guaranteed to occur. Investors should not place undue reliance upon forward-looking statements. For a discussion of risks facing our business, see the information under the heading “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), which is accessible on the SEC’s website at www.sec.gov.