Weingarten Realty Investors became the latest retail REIT to announce a large divestment with the news that the firm has entered a definitive agreement to sell its wholly-owned industrial portfolio to DRA Advisors LLC. The portfolio is comprised of 52 industrial properties, aggregating approximately 9.6 million sq. ft. located in Florida, Georgia, Tennessee, Texas and Virginia. The portfolio is predominately unencumbered, with DRA assuming one secured loan of $4.9 million. The sale price is $382.4 million, representing a capitalization rate of approximately 8 percent.

Proceeds from this transaction will be used to pay down amounts outstanding under its revolving credit facility and repay a $200 million unsecured term loan, resulting in a further strengthening of the Company’s balance sheet and providing additional capacity to fund growth opportunities in its core retail markets.

“The sale of this portfolio demonstrates our commitment to the company’s capital recycling initiative. It is a significant step toward the strategic exit from industrial real estate, further strengthening our position as a pure-play retail REIT,” Weingarten President and CEO Drew Alexander said in a statement.

The company retains an interest in two joint venture relationships, which at the company’s pro rata share, aggregates approximately 1.4 million sq. ft. of industrial real estate.

J.P. Morgan Securities LLC served as financial advisor to Weingarten on the sale.