LOS ANGELES—Astrum Investment Management has launched its sale lease-back buy-back (SLB3) investment model with the purchase of five industrial properties located in California, Virginia and South Carolina. With this strategy, AIM buys from corporate owner-users and then leases the property back to the previous owner for 20 years while giving the company the right to purchase the property back at the end of a five-year term at a prearranged purchase price.
“We created Astrum’s sale lease-back buy-back model to serve owner-users who desire ownership of their corporate real estate over the long term, but require liquidity to grow,” said AIM Founder and Managing Director Nevil Sanli.
AIM plans to target middle market industrial and office properties in the $10 million to $75 million range throughout the United States. The company plans to invest up to $120 million this year, with plans to launch a second fund in 2014 worth $250 million.
“AIM’s target companies/sellers require special underwriting expertise, and are of no interest to private equity funds and larger banks,” said AIM Managing Director John Hartman.
The five SLB3 acquisitions give AIM a portfolio of 574,800 sq. ft. The off-market deal to acquire this single-story industrial properties is valued at $14 million. The exact properties acquired were not disclosed.