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Sachem Capital, IRG to Form $3.4B Industrial REIT
Mortgage REIT Sachem Capital Corp. and privately held Industrial Realty Group (IRG) said Monday they have entered into a definitive contribution agreement under which IRG will contribute 98 industrial assets from its 200-asset portfolio owned by IRG and/or its partners to Sachem. The combined company will operate as IRG Realty Trust, Inc. (IRGT).
Upon closing, IRGT is expected to own 98 industrial properties with gross real estate asset value of $2.9 billion plus Sachem’s approximately $470 million of total assets. IRGT is expected to have an implied enterprise value of approximately $3.4 billion, positioning it as a top‑10 publicly listed industrial REIT based on enterprise value.
IRGT will focus on mission‑critical industrial infrastructure supporting manufacturing and distribution users. The assets not being contributed will continue to be owned and operated by IRG’s existing private business.
“This accretive transaction provides a clear step forward for Sachem shareholders and IRG stakeholders creating a powerful industrial platform with greater scale and a strategy built for sustained growth,” said John Villano, CEO of Sachem. “In addition to becoming one of the largest owners of industrial assets in the country with sizable mark-to-market opportunity, Sachem’s direct and indirect mortgage capabilities will also continue to provide creative capital solutions to real estate developers and investors.”
It’s expected that the combined company’s leadership will be comprised of Sachem executives and key additions with extensive industrial real estate experience.
Scotiabank is serving as exclusive financial advisor and King & Spalding LLP is serving as legal advisor to IRG. Piper Sandler & Co. and Stout Risius Ross, LLC are acting as financial advisors and Morrison & Foerster LLP is serving as legal advisor to Sachem.
- ◦Sale/Acquisition
