Landmark Infrastructure Partners LP Announces the First Drop-Down Acquisition of Assets Subject to Its Right of First Offer; Fourth Drop-Down Transaction Since the IPO
Landmark Infrastructure Partners LP (the "Partnership") (NASDAQ: LMRK) today announced that it has acquired 193 tenant sites located in 34 states from an affiliate of its sponsor, Landmark Dividend LLC ("Landmark"). The consideration consisted of approximately 2.0 million Partnership units, valued at approximately $31.5 million, and approximately $34.9 million in cash, for total consideration of $66.4 million. This acquisition is expected to be immediately accretive to the Partnership's distributable cash flow.
Highlights of the transaction:
The assets acquired by the Partnership consist of 135 wireless communication, 57 outdoor advertising and one renewable power generation sites;
The wireless communication, outdoor advertising and renewable power generation assets are expected to contribute approximately 76%, 17% and 7%, respectively, of the total forecasted annual rents. The renewable power generation asset in this transaction represents the Partnership's first acquisition of a utility-scale solar power tenant site;
The Portfolio is 100% occupied and includes: (i) 88% of annual rents from Tier 1 tenants (large, publicly-traded companies with national footprints); (ii) an average annual escalator of 2.9%; and (iii) average remaining real property interest and lease terms of 77 years and 20 years (including remaining renewal options), respectively;
The assets were acquired as part of the Partnership's right of first offer ("ROFO") with Landmark Dividend Growth Fund – E LLC, an affiliate of Landmark. After the completion of this transaction, the Partnership will have a right of first offer on over 800 ROFO assets with Landmark's affiliates.
The Partnership's Chief Executive Officer, Tim Brazy, said, "We are very excited to announce the Partnership's first ROFO portfolio acquisition. This is the largest acquisition to date and collectively brings the Partnership's 2015 acquisitions to 447 tenant sites, representing an increase of over 60% since our IPO. We are very pleased with our continued strong growth and this drop-down transaction, which is consistent with and supports the guidance we reiterated on our second quarter earnings call."
The terms of the acquisition were approved by the Board of Directors of the General Partner of the Partnership, based on the approval and recommendation of the Conflicts Committee, which is comprised entirely of independent directors. The Conflicts Committee was advised by Duff & Phelps Corporation, its financial advisor, and Akin Gump Straus Hauer & Feld LLP, its legal counsel.
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