STORE Capital Launches Half-Billion Dollar REIT with OCM STR Holdings, L.P.
– Subsidiary of Oaktree-managed funds sponsors $400 million investment commitment –
– STORE to Target Single Tenant Operational Real Estate Investments in the United States –
Scottsdale, AZ – May 25, 2011 – STORE Capital, a new-generation REIT formed to invest in single tenant properties such as chain restaurants, supermarkets, drug stores and other retail, service and distribution facilities, announced today that it has launched a $500 million private equity raise, and has secured a $400 million commitment from OCM STR Holdings, L.P., a wholly owned subsidiary of certain investment funds managed by Oaktree Capital Management, L.P., a premier global alternative and non-traditional investment manager with $85 billion in assets under management as of March 31, 2011. Proceeds from the equity raise will be used to fund STORE Capital’s initial real estate investments.
STORE [Single Tenant Operational Real Estate] was founded by Morton H. Fleischer and Christopher H. Volk, the two individuals responsible for the formation and growth of Spirit Finance (formerly NYSE: SFC) and Franchise Finance Corporation of America (formerly NYSE: FFA). Mr. Fleischer serves as STORE Capital’s Chairman while Mr. Volk oversees operations as the Company’s Chief Executive Officer. In addition, STORE’s experienced leadership team includes Catherine Long, executive vice president and chief financial officer; Michael Zieg, executive vice president of portfolio management; Michael Bennett, executive vice president of operations and Mary Fedewa, executive vice president of acquisitions. This team has successfully invested nearly $10 billion in single tenant operational real estate assets since 1981, and guided the formation and ultimate sale of two successful publicly listed REITs resulting in significant returns for shareholders.
“In over 25 years in this business, I’ve learned that the most important ingredient for success is building a team comprised of the best and brightest,” said Mr. Volk. “We have one of the finest management teams in the country and are pleased to work together with the highly talented group at Oaktree. Together, we see clear opportunities to create a market-leading company that will address the broad need for long-term capital for single tenant operational real estate assets. We’re extremely excited about our new venture.”
Mr. Fleischer and Mr. Volk have an established history of creating successful real estate entities that have consistently surpassed return benchmarks. Over the course of 30 years, the founders have:
invested nearly $10 billion in more than 7,000 single tenant operational real estate assets;
raised approximately $3.0 billion in investor capital;
paid over $5 billion in investor distributions;
realized consistent portfolio returns and cash flow growth characteristics through all economic climates; and
achieved total returns in excess of comparable REITs and the S&P 500 over the long-term.
About STORE Capital
STORE Capital is a new generation real estate investment trust designed to address the long-term capital needs of real estate intensive operating businesses throughout the United States. Through tailored real estate lease and mortgage financing, STORE’s aim is to create wealth for our customers through our ability to improve the capitalization efficiency of their businesses. For more information, visit www.storecapital.com
About Oaktree Capital Management, L.P.
Oaktree is a premier global alternative and non-traditional investment manager with $85 billion in assets under management as of March 31, 2011. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, high yield bonds, convertible securities, senior loans, corporate control (including power opportunities), real estate, emerging market equities and mezzanine finance. Oaktree was founded in 1995 by a group of principals who have worked together since the mid-1980s. Headquartered in Los Angeles, the firm has approximately 615 employees and offices in 13 cities worldwide.