Petershill buys stake in Oak Street Real Estate Capital

Marc Zahr and Jim Hennessey of Oak Street (Image credit: Crain’s)

Petershill, a unit of Goldman Sachs Group that acquires interests in alternative investment managers, has made its latest move into the real estate industry with the purchase of a minority stake Oak Street real estate capitalAccording to the Wall Street Journal. The deal values ​​the company at $ 2 billion.

  • Sale-leaseback strategy: Oak Street has raised over $ 6.5 billion since launch in 2009 and typically co-purchases retail stores (35% of the portfolio composition), warehouses (50% of the portfolio) and office properties (15% of the portfolio) from tenants Investment grade rating and then rent them back.
  • Be smart: According to Green Street, rental income for the sector has since risen to over 90% again. The shares of sale-leaseback real estate investment trusts, which are roughly 80% invested in retail stores, restaurants and other retail stores, have declined an average of 20% since the pandemic began, compared with 35% for malls and 23% for strip centers .
  • Heard on the street: Co-Founder and CEO of Oak Street Marc Zahr It is estimated that investment grade companies have $ 8.3 trillion worth of commercial real estate in the United States and Canada alone that could be sold and rented back. It’s $ 24 trillion worldwide. “If you have the right partner, you can recharge a company like ours …” There is a tremendous opportunity to unleash value and move real estate off the balance sheet of companies that do not own real estate into our balance sheet “, he told the journal.
  • Worthless: Other real estate companies in Petershill’s portfolio are: Westbrook Partners and Slate Asset Management. [WSJ]